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19.02.2013 Views

CMS-1403-FC 1842(n)(1) of the Act. In light of this proposal, we also requested comments on how to consider locum tenens and other arrangements under which a physician provides occasional services outside of his or her physician organization, as we recognized that circumstances may exist under which it is beneficial or necessary for a physician to provide diagnostic testing services to more than one physician practice. We proposed a second alternative proposal, which we designate here as “Alternative 2,” which would maintain much of the current regulation text, and its “site-of- service” approach to determining whether a physician “shares a practice” with the billing physician or other supplier, that was finalized in the CY 2008 PFS final rule with comment period. In other words, we reproposed to apply the anti-markup payment limitation to non-purchased TCs and PCs that are performed outside the office of the billing physician or other supplier. We also solicited comments on whether this is the best anti-markup approach or whether we should employ a different approach. Specifically, in Alternative 2, we proposed to amend §414.50 to: (1) clarify that the “office of the billing physician or other supplier” includes space in which diagnostic testing is performed that is located in the same 418

CMS-1403-FC building in which the billing physician or other supplier regularly furnishes patient care (and to make two other revisions to the definition); (2) clarify that, with respect to TCs, the anti-markup provision applies if the TC is either conducted or supervised outside the office of the billing physician or other supplier; (3) clarify when we consider the TC of a diagnostic test to be purchased from an outside supplier; (4) clarify that, for purposes of applying the payment limitation in §414.50(a)(1)(i) only, with respect to the TC, the “performing supplier” is the physician who supervised the TC and, with respect to the PC, the "performing supplier" is the physician who performed the PC; and (5) include an exception for diagnostic tests ordered by a physician in a physician organization (as defined at §411.351) that does not have any owners who have the right to receive profit distributions. Finally, we solicited comments on how to define "net charge" and on whether we should delay beyond January 1, 2009, the application of the revisions made by the CY 2008 PFS final rule with comment period, or the proposed revisions (to the extent they are finalized), or both. We received numerous comments in response to the proposals related to the anti-markup provisions. Some 419

<strong>CMS</strong>-1403-FC<br />

1842(n)(1) of the Act. In light of this proposal, we also<br />

requested comments on how to consider locum tenens and<br />

other arrangements under which a physician provides<br />

occasional services outside of his or her physician<br />

organization, as we recognized that circumstances may exist<br />

under which it is beneficial or necessary for a physician<br />

to provide diagnostic testing services to more than one<br />

physician practice.<br />

We proposed a second alternative proposal, which we<br />

designate here as “Alternative 2,” which would maintain<br />

much of the current regulation text, and its “site-of-<br />

service” approach to determining whether a physician<br />

“shares a practice” with the billing physician or other<br />

supplier, that was finalized in the CY 2008 PFS final rule<br />

with comment period. In other words, we reproposed to<br />

apply the anti-markup payment limitation to non-purc<strong>has</strong>ed<br />

TCs and PCs that are performed outside the office of the<br />

billing physician or other supplier. We also solicited<br />

comments on whether this is the best anti-markup approach<br />

or whether we should employ a different approach.<br />

Specifically, in Alternative 2, we proposed to amend<br />

§414.50 to: (1) clarify that the “office of the billing<br />

physician or other supplier” includes space in which<br />

diagnostic testing is performed that is located in the same<br />

418

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