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

The formula for estimating the cost per minute for<br />

equipment is based upon a variety of factors, including the<br />

cost of the equipment, useful life, interest rate,<br />

maintenance cost, and utilization. The purpose of this<br />

formula is to identify an estimated cost per minute for the<br />

equipment that can be multiplied by the time the equipment<br />

is in use to obtain an estimated per use equipment cost to<br />

develop the resource-based PE RVU.<br />

In calculating the estimated cost per minute for<br />

services that are in use 24 hours per day for 7 days per<br />

week, we have assumed that the maximum amount of time that<br />

the equipment can be in use is approximately 525,000<br />

minutes (that is, 525,000 minutes = (24 hours per day) x<br />

(7 days per week) x (52 weeks per year) x (60 minutes per<br />

hour)).<br />

For CY 2008, we used 525,000 minutes to calculate the<br />

per minute equipment cost for the equipment used in CPT<br />

code 93012, Telephonic transmission of post-symptom<br />

electrocardiogram rhythm strip(s), 24-hour attended<br />

monitoring, per 30 day period of time; tracing only and CPT<br />

code 93271, Patient demand single or multiple event<br />

recording with presymptom memory loop, 24-hour attended<br />

monitoring, per 30 day period of time; monitoring, receipt<br />

of transmissions, and analysis. Based on information<br />

63

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