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2006 proposed fee schedule - American Society of Clinical Oncology

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multi-specialty PEAC that were based on presentations from the<br />

relevant specialties after being closely scrutinized by the PEAC<br />

using standards and packages agreed to by all involved<br />

specialties. Second, the refined CPEP/RUC data are more current<br />

than the SMS data for the majority <strong>of</strong> specialties. Third, for<br />

direct costs, it appears more accurate to assume that the costs<br />

<strong>of</strong> the clinical staff, supplies and equipment are the same for a<br />

given service, regardless <strong>of</strong> the specialty that is performing<br />

it. This assumption does not hold true under the top-down<br />

direct cost methodology, where the specialty-specific scaling<br />

factors create widely differing costs for the same service.<br />

We also would argue that the <strong>proposed</strong> methodology is less<br />

confusing and more intuitive than the current approach. First,<br />

the nonphysician work pool would be eliminated and all services<br />

would be priced using one methodology, eliminating the<br />

complicated calculations needed to price nonphysician work pool<br />

services. Second, the method for calculation <strong>of</strong> direct costs<br />

can now be described in sentences rather than paragraphs.<br />

Third, any revisions made to the direct inputs would now have<br />

predictable results. Changes in the direct practice inputs for<br />

a service would proportionately change the PE RVUs for that<br />

service without significantly affecting the PE RVUs for<br />

unrelated services.<br />

The <strong>proposed</strong> methodology would also create a system that<br />

would be significantly more stable from year-to-year than the<br />

61

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