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2006 proposed fee schedule - American Society of Clinical Oncology

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specialty are scaled to match the aggregate SMS costs, we<br />

propose to adopt a bottom-up method <strong>of</strong> determining the relative<br />

direct costs for each service. Under this method, the direct<br />

costs would be determined by summing the costs <strong>of</strong> the<br />

resources – the clinical staff, equipment and supplies –<br />

typically required to provide the service. The costs <strong>of</strong> the<br />

resources, in turn, would be calculated from the refined<br />

CPEP/RUC inputs in our PE database.<br />

● Eliminate the Nonphysician Work Pool<br />

Now that we have new survey data for the major specialties<br />

that comprise the nonphysician work pool, we would eliminate the<br />

pool and calculate the PE RVUs for the services currently in the<br />

pool by the same methodology used for all other services. This<br />

would allow the use <strong>of</strong> the refined CPEP/RUC data to price the<br />

direct costs <strong>of</strong> individual services, rather than utilizing the<br />

pre-1998 charge-based PE RVUs.<br />

● Utilize the Current Indirect PE RVUs, Except for Those<br />

Services Affected by the Accepted Supplementary Survey Data<br />

As described previously, the SMS and supplementary survey<br />

data are the source for the specialty-specific aggregate indirect<br />

costs used in our PE calculations. We then allocate to<br />

particular codes on the basis <strong>of</strong> the direct costs allocated to a<br />

code and the work RVUs. Although we now believe the CPEP/RUC<br />

data are preferable to the SMS data for determining direct costs,<br />

we have no information that would indicate that the current<br />

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