Practice expenses in the MFS (Medicare fee schedule): the service-class approach.
Latimer, Eric A
Date of Pub
Kane, Nancy M
The practice expense component of the Medicare fee schedule (MFS), which is currently based on historical charges and rewards
physician procedures at the expense of cognitive services, is due to be changed by January 1, 1998. The Physician Payment
Review Commission (PPRC) and others have proposed microcosting direct costs and allocating all indirect costs on a common
basis, such as physician time or work plus direct costs. Without altering the treatment of direct costs, the service-class
approach disaggregates indirect costs into six practice function costs. The practice function costs are then allocated to
classes of services using cost-accounting and statistical methods. This approach would make the practice expense component
more resource-based than other proposed alternatives.
Relative Value Scales : Cost Allocation : Data Collection : Fee Schedules/legislation & jurisprudence/statistics & numerical
data : Medicare Part B/legislation & jurisprudence : Practice Management, Medical/economics/statistics & numerical data :
Support, U.S. Gov't, Non-P.H.S. : United States