2006 proposed fee schedule - American Society of Clinical Oncology

2006 proposed fee schedule - American Society of Clinical Oncology 2006 proposed fee schedule - American Society of Clinical Oncology

19.02.2013 Views

that, in the aggregate, the refined CPEP data represent, more reliably, the relative direct costs PE inputs for physician services. The major specialties comprising the nonphysician work pool (radiology, radiation oncology and cardiology) have submitted supplemental survey data that we are proposing to accept. (See the discussion on supplementary surveys above.) Now that we have representative aggregate PE data for these specialties, the continued necessity and equity of treating these technical services outside the PE methodology applied to other services is questionable. We have also taken steps to make our complex top-down PE methodology more understandable. For example, we eliminated the somewhat arcane “linking” of direct cost input data when more than one CPEP panel reviewed a service and did away with the confusing and unhelpful distinction between procedure-specific and indirect equipment. However, we acknowledge that most in the medical community would find our current methodology, as described above, neither clear nor intuitive. For example, because of the need to scale the CPEP/RUC inputs to the SMS PEs under our top-down methodology, the PE RVUs for a procedure do not necessarily change proportionately with changes in the direct inputs. This raises the question as to what would now be the most straightforward and intuitive methodology for calculating the direct PE RVUs. 56

Due to the ongoing refinement by the RUC of the direct PE inputs, we had expected that the PE RVUs would necessarily fluctuate from year-to-year, frustrating temporarily our efforts to reach the goal of stabilizing the PE portion of the PFS. At the same time, it became apparent that certain aspects of our methodology exacerbated the yearly fluctuations. For example, the need to scale the CPEP costs to equal the SMS costs meant that any changes in the direct PE inputs for one service often leads to unexpected results for other services where the inputs had not been altered. In addition, the services priced by the nonphysician work pool methodology have proved to be especially vulnerable to any change in the pool’s composition. We understand the need for stable PE RVUs, so that physicians and other practitioners can anticipate from year-to-year what the relative payments will be for the services they perform. Now, that the CPEP/RUC refinement of existing services is virtually complete, this appears to be an opportunity for us to propose a way to provide stability to the PE RVUs. Therefore, consistent with our goals of using the most appropriate data, simplifying our methodology, and increasing the stability of the payment system, we are proposing the following changes to our PE methodology: ● Use a Bottom-up Methodology to Calculate Direct PE Costs Instead of using the top-down approach to calculate the direct PE RVUs, where the aggregate CPEP/RUC costs for each 57

Due to the ongoing refinement by the RUC <strong>of</strong> the direct PE<br />

inputs, we had expected that the PE RVUs would necessarily<br />

fluctuate from year-to-year, frustrating temporarily our efforts<br />

to reach the goal <strong>of</strong> stabilizing the PE portion <strong>of</strong> the PFS. At<br />

the same time, it became apparent that certain aspects <strong>of</strong> our<br />

methodology exacerbated the yearly fluctuations. For example,<br />

the need to scale the CPEP costs to equal the SMS costs meant<br />

that any changes in the direct PE inputs for one service <strong>of</strong>ten<br />

leads to unexpected results for other services where the inputs<br />

had not been altered. In addition, the services priced by the<br />

nonphysician work pool methodology have proved to be especially<br />

vulnerable to any change in the pool’s composition. We<br />

understand the need for stable PE RVUs, so that physicians and<br />

other practitioners can anticipate from year-to-year what the<br />

relative payments will be for the services they perform. Now,<br />

that the CPEP/RUC refinement <strong>of</strong> existing services is virtually<br />

complete, this appears to be an opportunity for us to propose a<br />

way to provide stability to the PE RVUs.<br />

Therefore, consistent with our goals <strong>of</strong> using the most<br />

appropriate data, simplifying our methodology, and increasing<br />

the stability <strong>of</strong> the payment system, we are proposing the<br />

following changes to our PE methodology:<br />

● Use a Bottom-up Methodology to Calculate Direct PE Costs<br />

Instead <strong>of</strong> using the top-down approach to calculate the<br />

direct PE RVUs, where the aggregate CPEP/RUC costs for each<br />

57

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