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CMS-1403-FC
Buildings B and C.” We noted in this example that, under
the proposed definition of the “office of the billing
physician or other supplier,” the anti-markup payment
limitation would not apply to diagnostic testing services
provided in Building B, but would apply to those services
provided in Building C. The commenter stated that it
agreed with our conclusion, if the ordering physician or
supplier’s services were provided in Building B. According
to the commenter, if the ordering physician provided his
or her services in Building A, the anti-markup provisions
should apply.
Response: We do not agree with the commenter’s
assertion that our revisions to §414.50(a)(2)(iv) undermine
the anti-markup provisions and enable “pod labs” to regain
their ability to facilitate markups. In particular, we
refer the reader to the definition of the “office of the
building physician or supplier” at §414.50(a)(2)(iv), which
includes space in which diagnostic testing services are
performed, that is in the “same building,” (as defined at
§411.351), in which the ordering physician or ordering
supplier regularly furnishes patient care (and more
specifically, for physician organizations, in the same
building in which the ordering physician provides
substantially the full range of patient care services that
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