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19.02.2013 Views

CMS-1403-FC similar arrangements), provided that the performing physician is not furnishing more than 25 percent of his or her professional services as a locum tenens physician (or in some other capacity, such as a part-time physician for another billing group or moonlighting at a hospital). We are also retaining the present site-of-service approach to determining whether a physician “shares a practice” with the billing physician or other supplier. This approach was reproposed as Alternative 2, with a proposed clarification that diagnostic testing performed in the “same building” (as defined at §411.351) in which the “office of the billing physician or other supplier” is located would not be subject to the anti-markup provisions (provided that the testing was not purchased from an outside supplier). We are adopting this clarification, but deleting the references to purchased TCs and PCs from §414.50, for the reasons explained below. We are also adopting certain proposed clarifications and definitions. Specifically, a physician or other supplier may have more than one “office of the billing physician or other supplier,” and the “office of the billing physician or other supplier” is defined as space in which the ordering physician or other ordering supplier regularly furnishes care (and with respect to physician organizations, is the 426

CMS-1403-FC space in which the ordering physician performs substantially the full range of patient care services that the ordering physician provides generally). We are adding to Alternative 2 the requirement, with respect to the TC, that the physician supervising the TC be an owner, employee, or independent contractor of the billing physician or other supplier, and, with respect to the PC, that the physician performing the PC be an employee or independent contractor of the billing physician or other supplier. We are doing this in order to simplify our rules and to avoid having a separate basis for imposing an anti- markup payment limitation for TCs supervised and PCs performed by outside suppliers. We explain our rationale for this change in the next paragraph. We are not finalizing a definition of outside supplier, and instead we are deleting references to a “purchased” test or interpretation in §414.50 because they are unnecessary, as explained below. We note that section 1842(n)(1) of the Act requires us to impose an anti-markup payment limitation on diagnostic tests that are performed or supervised by a physician who does not share a practice with the billing physician or other supplier. Traditionally, we have interpreted section 1842(n)(1) of the Act as applying to purchased TCs from an outside 427

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

similar arrangements), provided that the performing<br />

physician is not furnishing more than 25 percent of his or<br />

her professional services as a locum tenens physician (or<br />

in some other capacity, such as a part-time physician for<br />

another billing group or moonlighting at a hospital).<br />

We are also retaining the present site-of-service<br />

approach to determining whether a physician “shares a<br />

practice” with the billing physician or other supplier.<br />

<strong>This</strong> approach was reproposed as Alternative 2, with a<br />

proposed clarification that diagnostic testing performed in<br />

the “same building” (as defined at §411.351) in which the<br />

“office of the billing physician or other supplier” is<br />

located would not be subject to the anti-markup provisions<br />

(provided that the testing was not purc<strong>has</strong>ed from an<br />

outside supplier). We are adopting this clarification, but<br />

deleting the references to purc<strong>has</strong>ed TCs and PCs from<br />

§414.50, for the reasons explained below. We are also<br />

adopting certain proposed clarifications and definitions.<br />

Specifically, a physician or other supplier may have more<br />

than one “office of the billing physician or other<br />

supplier,” and the “office of the billing physician or<br />

other supplier” is defined as space in which the ordering<br />

physician or other ordering supplier regularly furnishes<br />

care (and with respect to physician organizations, is the<br />

426

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