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CMS-1403-FC more invasive than clinical laboratory tests such as fingerstick for hematocrit or a dipstick urine. Response: Billing physicians and other suppliers will continue to be able to employ a physician specialist on a part-time basis. Under Alternative 1, if the specialist furnishes “substantially all” (at least 75 percent) of his or her professional services through the billing physician or other supplier, the specialist “shares a practice” with the billing physician or other supplier. Because this rule finalizes both proposed approaches, if an arrangement does not satisfy the “substantially all” test of Alternative 1, the billing of a TC or PC may still avoid application of the anti-markup payment limitation if it meets, as determined on a case-by-case basis, the “site-of-service” requirements of Alternative 2. Alternatively, part-time physicians can bill Medicare directly. Comment: Some commenters contended that adoption of Alternative 1 would interfere unfairly with the practice of medicine by severely limiting physician practices’ right to organize themselves as they see fit to deliver quality care to their patients. These commenters stated that adoption of Alternative 1 would prevent a group from hiring a part- time pathologist, as is common for gastroenterology practices that provide pathology services to their 452
CMS-1403-FC patients. According to the commenters, the elimination of full reimbursement (that is, the PFS amount) for pathology services provided by part-time pathologists would interfere with the multi-disciplinary approach that the commenters have chosen to best serve patients. One commenter asserted that, despite the fact that the pathologist simply may bill the Medicare program directly, Alternative 1 interferes with the practice of medicine. The commenter asserted that our proposal is equivalent to saying that a physician group cannot hire a part-time pathologist as part of its practice. The commenter contended that finding a pathologist who would travel to its offices was not easy, and that informing a pathologist that he or she can bill Medicare directly from the group’s office provides no incentive to the pathologist. This commenter predicted that the approach outlined in Alternative 1 would force pathology to revert to the traditional model of referring physicians sending specimens to a laboratory and receiving pathology reports, rather than communicating with the pathologist directly. One commenter stated its belief that, if we permit a pathologist to bill for professional services directly, there is no reason for the pathologist to travel to different physician’s offices if he or she can collect the same amount for professional fees while working 453
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<strong>CMS</strong>-1403-FC<br />
patients. According to the commenters, the elimination of<br />
full reimbursement (that is, the PFS amount) for pathology<br />
services provided by part-time pathologists would interfere<br />
with the multi-disciplinary approach that the commenters<br />
have chosen to best serve patients. One commenter asserted<br />
that, despite the fact that the pathologist simply may bill<br />
the Medicare program directly, Alternative 1 interferes<br />
with the practice of medicine. The commenter asserted that<br />
our proposal is equivalent to saying that a physician group<br />
cannot hire a part-time pathologist as part of its<br />
practice. The commenter contended that finding a<br />
pathologist who would travel to its offices was not easy,<br />
and that informing a pathologist that he or she can bill<br />
Medicare directly from the group’s office provides no<br />
incentive to the pathologist. <strong>This</strong> commenter predicted<br />
that the approach outlined in Alternative 1 would force<br />
pathology to revert to the traditional model of referring<br />
physicians sending specimens to a laboratory and receiving<br />
pathology reports, rather than communicating with the<br />
pathologist directly. One commenter stated its belief<br />
that, if we permit a pathologist to bill for professional<br />
services directly, there is no reason for the pathologist<br />
to travel to different physician’s offices if he or she can<br />
collect the same amount for professional fees while working<br />
453