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CMS-1403-FC
equipment cost per minute is calculated as described at the
end of this section.
Apply a BN adjustment to the direct inputs.
Step 2: Calculate the current aggregate pool of direct
PE costs. To do this, multiply the current aggregate pool
of total direct and indirect PE costs (that is, the current
aggregate PE RVUs multiplied by the CF) by the average
direct PE percentage from the SMS and supplementary
specialty survey data.
Step 3: Calculate the aggregate pool of direct costs.
To do this, for all PFS services, sum the product of the
direct costs for each service from Step 1 and the
utilization data for that service.
Step 4: Using the results of Step 2 and Step 3
calculate a direct PE BN adjustment so that the aggregate
direct cost pool does not exceed the current aggregate
direct cost pool and apply it to the direct costs from
Step 1 for each service.
Step 5: Convert the results of Step 4 to an RVU scale
for each service. To do this, divide the results of Step 4
by the Medicare PFS CF.
(iii) Create the indirect PE RVUs.
Create indirect allocators.
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