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CMS-1403-FC
Step 6: Based on the SMS and supplementary specialty
survey data, calculate direct and indirect PE percentages
for each physician specialty.
Step 7: Calculate direct and indirect PE percentages
at the service level by taking a weighted average of the
results of Step 6 for the specialties that furnish the
service. Note that for services with TCs and PCs we are
calculating the direct and indirect percentages across the
global components, PCs, and TCs. That is, the direct and
indirect percentages for a given service (for example,
echocardiogram) do not vary by the PC, TC and global
component.
Step 8: Calculate the service level allocators for
the indirect PEs based on the percentages calculated in
Step 7. The indirect PEs are allocated based on the three
components: the direct PE RVU, the clinical PE RVU, and
the work RVU.
For most services the indirect allocator is:
indirect percentage * (direct PE RVU/direct
percentage) + work RVU.
modified:
There are two situations where this formula is
• If the service is a global service (that is, a
service with global, professional, and technical
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