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CMS-1403-FC
2 approach finalized here. Similarly, there is no need to
create an exception for titular owners.
f. Definition of the “Office of the Billing Physician or
Other Supplier”
Comment: One commenter, generally supportive of our
proposed clarification of the definition of “office of the
billing physician or other supplier”, questioned its
application in Example 2 from the proposed rule (73 FR
38547) which would allow two separate physician
organizations to share space used for diagnostic testing
that is located in the same building in which the physician
organizations have their respective offices. The commenter
asserted that allowing two or more providers to share a
laboratory undermines the anti-markup payment limitation,
essentially enabling “pod labs” to regain their ability to
facilitate markups by the referring physician or physician
organization. The same commenter also requested
clarification regarding Example 3 in the proposed rule (73
FR 38547), in which a “group practice treats patients in
Buildings A, B, and C. In each of its offices in Buildings
A and B, the group practice provides substantially the full
range of patient care services that it provides generally,
but that is not true for space located in Building C. The
group practice provides diagnostic testing services in
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