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

clinical labor portions of the direct PE RVUs to allocate<br />

the indirect PE for that service.<br />

c. Facility/Nonfacility Costs<br />

Procedures that can be furnished in a physician’s<br />

office as well as in a hospital or facility setting have two<br />

PE RVUs: facility and nonfacility. The nonfacility setting<br />

includes physicians’ offices, patients’ homes, freestanding<br />

imaging centers, and independent pathology labs. Facility<br />

settings include hospitals, ambulatory surgical centers<br />

(ASCs), and skilled nursing facilities (SNFs). The<br />

methodology for calculating PE RVUs is the same for both<br />

facility and nonfacility RVUs, but is applied independently<br />

to yield two separate PE RVUs. Because the PEs for services<br />

provided in a facility setting are generally included in the<br />

payment to the facility (rather than the payment to the<br />

physician under the PFS), the PE RVUs are generally lower<br />

for services provided in the facility setting.<br />

d. Services with Technical Components (TCs) and<br />

Professional Components (PCs)<br />

Diagnostic services are generally comprised of two<br />

components: a professional component (PC) and a technical<br />

component (TC), both of which may be performed independently<br />

or by different providers. When services have TCs, PCs, and<br />

global components that can be billed separately, the payment<br />

48

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