Notice: This CMS-approved document has been submitted - Philips ...

CMS-1403-FC
for the global component equals the sum of the payment for
the TC and PC. This is a result of using a weighted average
of the ratio of indirect to direct costs across all the
specialties that furnish the global components, TCs, and
PCs; that is, we apply the same weighted average indirect
percentage factor to allocate indirect expenses to the
global components, PCs, and TCs for a service. (The direct
PE RVUs for the TC and PC sum to the global under the
bottom-up methodology.)
e. Transition period
As discussed in the CY 2007 PFS final rule with comment
period (71 FR 69674), we are implementing the change in the
methodology for calculating PE RVUs over a 4-year period.
During this transition period, the PE RVUs will be
calculated on the basis of a blend of RVUs calculated using
our methodology described previously in this section
(weighted by 25 percent during CY 2007, 50 percent during
CY 2008, 75 percent during CY 2009, and 100 percent
thereafter), and the CY 2006 PE RVUs for each existing code.
PE RVUs for codes that are new during this period will be
calculated using only the current PE methodology and will be
paid at the fully transitioned rate.
f. PE RVU Methodology
49