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

we did not propose such an exception and, thus, question<br />

whether we would have the authority to provide for such an<br />

exception in this final rule. Moreover, we are not<br />

convinced of the need for or wisdom of such an exception.<br />

We believe that the same potential that exists for the<br />

overutilization of diagnostic tests ordered by single-<br />

specialty physician groups and other suppliers, due to the<br />

profit motive, also exists for the ordering of special<br />

stains or other tests by pathology groups or independent<br />

laboratories.<br />

Comment: An association that represents physician<br />

group practices suggested that we establish a multi-<br />

specialty medical group “carve out” for “merit,” that is,<br />

an exemption from the anti-markup provisions based on<br />

delivery of high-quality health care services in the multi-<br />

specialty/organized system of care model. According to the<br />

commenter, the potential and risk for inappropriate actions<br />

is outweighed by the attributes and meritorious actions of<br />

multi-specialty groups. The commenter noted that, in<br />

section 131 of MIPPA, the Congress recognized the<br />

coordinated approach to patient care that multi-specialty<br />

medical groups provide.<br />

A different commenter requested that multi-specialty<br />

group practices not be permitted to use the employment or<br />

515

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