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

to focus on the medical office space where the ordering<br />

physician provides substantially the full range of patient<br />

care services that the ordering physician provides<br />

generally.<br />

We are not adopting the approach suggested by the<br />

second commenter. The fact that diagnostic testing<br />

services are performed or interpreted in a space that is<br />

leased by two or more groups (but which is located in the<br />

same building as the space in which the billing physician<br />

or other supplier regularly furnishes patient care) does<br />

not cause the testing to be subject to the anti-markup<br />

provisions. Example: Physician A <strong>has</strong> an office located on<br />

the first floor of Medical Office Building. In his office,<br />

Physician A performs the full range of services that he<br />

provides generally (and thus the space meets the criteria<br />

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

under §414.50(a)(2)(iii). Physician A orders a diagnostic<br />

test, which is conducted by a technician and supervised by<br />

Physician B in a diagnostic testing facility located in the<br />

basement of Medical Office Building. Physician B also<br />

performs the PC of the test in the diagnostic testing<br />

facility. Physician B reassigns her right to bill for the<br />

TC and the PC of the test to Physician A. The diagnostic<br />

testing facility is shared, under block-time exclusive use<br />

469

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