Medicare Program; Five-Year Review of Work Relative Value Units Under the Physician Fee Schedule

Federal RegisterMay 3, 1996

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SUMMARY: This proposed notice discusses changes to work relative value

units (RVUs) affecting payment for physician services. Section

1848(c)(2)(B)(i) of the Social Security Act requires that we review all

work RVUs no less often than every 5 years. Since we implemented the

physician fee schedule effective for services furnished beginning

January 1, 1992, we have initiated the 5-year review of work RVUs that

will be effective for services furnished beginning January 1, 1997.

DATES: Comments will be considered if we receive them at the

appropriate address, as provided below, no later than 5 p.m. on July 2,

1996.

ADDRESSES: Mail written comments (1 original and 3 copies) to the

following address: Health Care Financing Administration, Department of

Health and Human Services, Attention: BPD-846-PN, P.O. Box 7519,

Baltimore, MD 21207-0519.

If you prefer, you may deliver your written comments (1 original

and 3 copies) to one of the following addresses:

Room 309-G, Hubert H. Humphrey Building, 200 Independence Avenue SW.,

Washington, DC 20201, or

Room C5-09-26, 7500 Security Boulevard, Baltimore, MD 21244-1850.

Because of staffing and resource limitations, we cannot accept

comments by facsimile (FAX) transmission. In commenting, please refer

to file code BPD-846-PN. Comments received timely will be available for

public inspection as they are received, generally beginning

approximately 3 weeks after publication of a document, in Room 309-G of

the Department's offices at 200 Independence Avenue SW., Washington,

DC, on Monday through Friday of each week from 8:30 a.m. to 5 p.m.

(phone: (202) 690-7890).

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Friday, except for Federal holidays.

FOR FURTHER INFORMATION CONTACT: Elizabeth Holland, (410) 786-1309.

SUPPLEMENTARY INFORMATION: To assist readers in referencing sections

contained in this proposed notice, we are providing the following table

of contents.

Table of Contents

I. Background

A. Legislative Requirements

B. Published Changes to the Physician Fee Schedule

C. Summary of the Development of Physician Work Relative Value

Units

D. Scope of the Review

II. Discussion of Comments and Decisions

A. Review of Comments (Includes Table 1--Five-Year Review of

Work Relative Value Units)

B. Discussion of Comments by Clinical Area

1. Integumentary System

2. Orthopaedic Surgery

3. Otolaryngology and Maxillofacial Surgery

4. Podiatry

5. Cardiology and Interventional Radiology

6. General Surgery, Colon and Rectal Surgery, and

Gastroenterology

7. Urology

8. Gynecology

9. Neurosurgery

10. Ophthalmology

11. Imaging

12. Cardiothoracic and Vascular Surgery

13. Pathology and Laboratory Procedures

14. Psychiatry

15. Other Medical and Therapeutic Services

16. Speech/Language/Hearing

C. Other Comments

1. Evaluation and Management Services (Includes Table 2--

Evaluation and Management Codes; Five-Year Review--Proposed Relative

Value Units)

2. Review of Studies by Abt Associates, Inc.

3. Pediatrics

4. Anesthesia

5. Codes Without Work Relative Value Units

6. Codes Referred to the Physicians' Current Procedural

Terminology Editorial Panel (Includes Table 3--Codes Referred to the

Physicians' Current Procedural Terminology Editorial Panel)

7. Potentially Overvalued Services

D. Other Issues

1. Budget Neutrality

2. Calculation of Practice Expense and Malpractice Expense

Relative Value Units

3. Impact of Work Relative Value Unit Changes for Evaluation and

Management Services on Work Relative Value Units for Global Surgical

Services

4. Proposal for Future Review

5. Nature and Format of Comments on Work Relative Value Units

III. Collection of Information Requirements

IV. Response to Comments

V. Regulatory Impact Analysis

A. Regulatory Flexibility Act

B. Effects on Physician Payments

1. Impact Estimation Methodology

2. Overall Fee Schedule Impact

3. Specialty Level Effect (Includes Table 4--Five-Year Review

Impact on Medicare Payments by Specialty)

C. Rural Hospital Impact Statement Addendum--Codes Subject to

Comment

In addition, because of the many organizations and terms to

which we refer by acronym in this proposed notice, we are listing

these acronyms and their corresponding terms in alphabetical order

below:

AMA American Medical Association

CPT [Physicians'] Current Procedural Terminology [4th Edition, 1996,

copyrighted by the American Medical Association]

HCFA Health Care Financing Administration

HCPCS HCFA Common Procedure Coding System

IWPUT Intraservice work per unit time

RUC [American Medical Association Specialty Society] Relative

[Value] Update Committee

RVU Relative value unit

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I. Background

A. Legislative Requirements

The Medicare program was established in 1965 by the addition of

title XVIII to the Social Security Act (the Act). Since January 1,

1992, Medicare pays for physician services under section 1848 of the

Act, ``Payment for Physicians' Services.'' This section contains three

major elements: (1) A fee schedule for the payment of physician

services; (2) a Medicare volume performance standard for the rates of

increase in Medicare expenditures for physician services; and (3)

limits on the amounts that nonparticipating physicians can charge

beneficiaries. The Act requires that payments under the fee schedule be

based on national uniform relative value units (RVUs) based on the

resources used in furnishing a service. Section 1848(c) of the Act

requires that national RVUs be established for physician work, practice

expense, and malpractice expense.

Section 1848(c)(2)(B)(ii)(II) of the Act provides that adjustments

in RVUs because of changes resulting from a review of those RVUs may

not cause total physician fee schedule payments to differ by more than

$20 million from what they would have been had the adjustments not been

made. If this tolerance is exceeded, we must make adjustments to

preserve budget neutrality.

B. Published Changes to the Physician Fee Schedule

We published a final rule on November 25, 1991 (56 FR 59502) to

implement section 1848 of the Act by establishing a fee schedule for

physician services furnished on or after January 1, 1992. In the

November 1991 final rule (56 FR 59511), we stated our intention to

update RVUs for new and revised codes in the American Medical

Association's (AMA's) Physicians' Current Procedural Terminology (CPT)

through an ``interim RVU'' process every year. The updates to the RVUs

and fee schedule policies follow:

September 15, 1992, as a correction notice for the 1992

physician fee schedule (57 FR 42491).

November 25, 1992, as a final notice with comment period

on new and revised RVUs only for the 1993 physician fee schedule (57 FR

55914).

June 7, 1993, as a correction notice for the 1993

physician fee schedule (58 FR 31964).

December 2, 1993, as a final rule with comment period (58

FR 63626) announcing revised payment policies and RVUs for 1994. (We

solicited comments on new and revised RVUs only. There were two

correction notices published for the 1994 physician fee schedule (July

15, 1994, 59 FR 36069) and (August 4, 1994, 59 FR 39828).)

December 8, 1994, as a final rule with comment period (59

FR 63410) to revise the geographic adjustment factor values, fee

schedule payment areas, and payment policies and RVUs for 1995. The

final rule also discussed the process for periodic review and

adjustment of RVUs not less frequently than every 5 years as required

by section 1848(c)(2)(B)(i) of the Act. (There were two correction

notices published for the 1995 physician fee schedule (January 3, 1995,

60 FR 46) and (July 18, 1995, 60 FR 36733).)

December 8, 1995, as a final rule with comment period (60

FR 63124) to revise various policies affecting payment for physician

services including Medicare payment for physician services in teaching

settings, the RVUs for certain existing procedure codes, and to

establish interim RVUs for new and revised procedure codes. The rule

also included the final revised 1996 geographic practice cost indices.

This proposed notice updates information in the final Federal

Register documents listed above. It discusses changes to work RVUs

affecting payment for physician services. Section 1848(c)(2)(B)(i) of

the Act requires that we review all work RVUs no less often than every

5 years. Since we implemented the physician fee schedule effective for

services furnished beginning January 1, 1992, we have initiated the 5-

year review of work RVUs that will be effective for services furnished

beginning January 1, 1997.

C. Summary of the Development of Physician Work Relative Value Units

Development of the concepts and methodology underlying the

physician fee schedule has been under way for a number of years. Based

on Congressional mandates contained in the Consolidated Omnibus Budget

Reconciliation Act of 1985 (Public Law 99-272), the Omnibus Budget

Reconciliation Act of 1986 (Public Law 99-509), and the Omnibus Budget

Reconciliation Act of 1987 (Public Law 100-203), we began our effort to

develop a physician fee schedule based on a relative value scale. We

were assisted in this task by a number of experts inside and outside of

government, including the research team at the Harvard University

School of Public Health. The Harvard research team produced ``A

National Study of Resource-Based Relative Value Scales for Physician

Services'' (September 1988) and ``A National Study of Resource-Based

Relative Value Scales for Physician Services Phase II'' (November 1990)

under a cooperative agreement with us. Harvard's Phase III final report

was completed in December of 1991.

A model fee schedule was published on September 4, 1990 as part of

a notice with comment period (55 FR 36178). The addenda to the model

fee schedule notice provided preliminary estimates of the RVUs

associated with the approximately 1,400 services studied as part of the

Harvard Phase I study. We provided a 60-day public comment period;

comments received were considered carefully and were helpful to us in

developing the proposed rule that was published in the Federal Register

on June 5, 1991 (56 FR 25792).

Based primarily on Phase II and some of Phase III of the Harvard

study, the proposed rule contained RVUs for more than 4,000 services

representing about 85 percent of Medicare payments. In Phase II, 15

additional medical and surgical specialties were studied that were not

studied in Phase I. In addition, seven Phase I specialties were

restudied, with four of these restudies funded by the specialty

societies. Not only did Phase II almost triple the number of services

for which RVUs had been produced, but it refined the RVUs for many of

the original 1,400 services.

The final rule published on November 25, 1991 (56 FR 59502) was

based primarily on Phases II and III of the Harvard study, which

produced RVUs for all but about 400 of the remaining Medicare-covered

services that required work RVUs. In Phase III, most of the

extrapolated Phases I and II RVUs were replaced by RVUs that were

generated by a small group survey process, and many preservice and

postservice work estimates for Phases I and II work RVUs were revised.

A few early Phase III results were available for inclusion in the

proposed rule; additional Phase III results were provided to us in

installments throughout 1991. We developed RVUs for roughly 400

services that had not been surveyed by Harvard (generally low volume

services or nonphysician services or services that were extrapolated by

Harvard). Physician work RVUs were reviewed and developed by carrier

medical directors, initially through a survey conducted by mail and

subsequently through group meetings to refine the product of the survey

process. Through a consensus or Delphi-type process, carrier medical

directors rated physician work for the remaining services. In addition,

a number of physician work RVUs were refined based on information

provided as part of the

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comment process on the June 5, 1991 proposed rule.

The AMA Specialty Society Relative Value Update Committee (RUC) was

formed in November 1991 and grew out of a series of discussions between

the AMA and the major national medical specialty societies. The RUC is

comprised of 26 members; 22 are representatives of major specialty

societies. The remaining members represent the AMA, the American

Osteopathic Association, and the CPT Editorial Panel. The work of the

RUC is supported by the RUC Advisory Committee made up of

representatives of 65 specialty societies in the AMA's House of

Delegates.

The RUC currently makes recommendations to us on the assignment of

RVUs for new and revised CPT codes. As we discussed in our December 8,

1994 final rule with comment period, we shared comments we received on

the 1995 work RVUs with the RUC (59 FR 63453). However, we retained the

responsibility for analyzing the comments and developing this proposed

notice.

D. Scope of the Review

We initiated the 5-year review by soliciting public comments on all

work RVUs for approximately 7,000 CPT/HCPCS (HCFA Common Procedure

Coding System) codes published in our December 8, 1994 final rule (59

FR 63410). We reviewed all timely comments received during the comment

period for our December 8, 1994 final rule. We excluded two major areas

of comments from the 5-year review. The first excluded area was

comments that addressed work RVUs that were considered interim for

1995. We considered these comments as a part of our annual review

process, the results of which we published in the December 8, 1995

final rule (60 FR 63124). The second major area we excluded was

comments that addressed practice expense and malpractice expense RVUs.

As we stated in the December 8, 1994 final rule (59 FR 63454), the

scope of the 5-year review is limited to work RVUs.

Three specialty societies (the American Academy of Orthopaedic

Surgeons, the American Society of Anesthesiologists, and the American

Academy of Otolaryngology - Head and Neck Surgery, Inc.) submitted

studies conducted for them by Abt Associates, Inc., which spanned all

of the more than 2,000 codes used by physicians in those specialties.

We referred these studies to the RUC. The American Academy of

Pediatrics submitted comments asserting that the physician work

involved in furnishing 480 services to pediatric patients is different

than the physician work involved in furnishing the same services to

adult patients.

After a preliminary screening, we referred approximately 3,500

codes to the RUC for its review. The codes included those found in

public comments (700 codes), the American Academy of Pediatrics

comments (480 codes); three special studies by Abt Associates, Inc.

(about 2,000 codes); and those we identified as potentially misvalued

(300 codes).

II. Discussion of Comments and Decisions

A. Review of Comments

During the comment period for our December 8, 1994 final rule (59

FR 63410), we received more than 500 public comments on approximately

1,100 codes. After review by our medical staff, we forwarded comments

on approximately 700 codes for consideration by the RUC. Comments that

we did not forward are listed in Table 1 and are identified by a code

that explains our rejection of the comment. In addition, we forwarded

comments on approximately 300 codes identified by us as potentially

misvalued.

Comments that we did not refer to the RUC generally fall into

several categories:

Comments that do not pertain to work RVUs or that are not

sufficiently descriptive to be helpful in understanding why the

existing RVUs are incorrect.

Comments on services for which we have not assigned work

RVUs because we have determined that the codes do not represent

physician services or, in a few instances, because they represent

either ``bundled'' or noncovered services.

Comments that are similar to, or duplicate, other comments

which we referred to the RUC.

The process for evaluating codes included in the 5-year review

involved the same basic methodology as the process for the annual

physician fee schedule update, with some important changes. Because the

5-year review involved evaluating the physician work of established

codes with established work RVUs, we needed compelling arguments to

support changes in the assignment of work RVUs. To gather evidence to

support these arguments, in addition to comparing the total physician

work involved in the services under review to key reference services,

we asked commenters to provide a detailed comparison of the preservice,

intraservice, and postservice time involved in the key reference

services selected. For this purpose, for surgical procedures, we

further divided postservice time into time on the day of the procedure,

time in the intensive care unit, hospital visits, and office or other

outpatient visits following discharge.

We also requested comments regarding other elements of physician

work, in addition to time, and the extent to which the service had

changed over the last 5 years. We considered the commenters' statements

regarding the complexity of each nontemporal component for the services

under review and the services used as key references. The nontemporal

components of work are the physician's mental effort and judgment,

technical skill and physical effort, and stress resulting from the risk

of mortality or iatrogenic harm to the patient. We also considered

whether the service had changed over the past 5 years as the result of

one of the following conditions: new technology that had become more

familiar to physicians, the service having been furnished to patients

who had more or less complex medical conditions, or a change in the

site where the service had usually been furnished.

The public comments addressed many CPT codes for evaluation and

management services. Because we introduced the new codes for these

services simultaneously with the Medicare physician fee schedule in

1992 and because we have not revised them during the annual update

process, their inclusion in the 5-year review presents the first

opportunity for evaluating their relative physician work. In the public

comments addressing these services, the major primary care specialty

societies stated that the services had become more difficult than they

were when the original Harvard resource-based relative value scale

surveys were conducted in the late 1980's, due to factors such as

decreasing lengths of hospital stay, increasing complexity of patients

in inpatient and outpatient settings, documentation and case management

requirements, and a better educated patient population that expects

more information from physicians.

For more than 1,000 codes included in the 5-year review, we divided

the CPT codes into clinical groups and another group containing all the

codes identified by the RUC as potentially overvalued services.

(Additional codes from the Abt Associates, Inc. studies and from the

American Academy of Pediatrics' comments are discussed in sections

II.C.2. and II.C.3. of this notice, respectively.) In addition, the AMA

is submitting approximately 65 CPT codes

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to its CPT Editorial Panel. The RUC was unable to recommend work RVUs

for these codes because the services were not clearly described or

could vary widely from patient to patient. We will address these codes

in a future annual update of the physician fee schedule. The following

is a categorization of our decisions and how they relate to the

comments received from the public (including medical specialty

societies) and the RUC:

For 28 percent of the codes, we are proposing to increase

the work RVUs.

For 61 percent of the codes, we are proposing to maintain

the current work RVUs. We are also proposing to maintain the values for

the anesthesia codes.

For 11 percent of the codes, we are proposing to decrease

the work RVUs.

Our proposed work RVUs agree with the RUC recommendations for 93

percent of the codes. Table 1--Five-Year Review of Work Relative Value

Units

Table 1 lists the codes reviewed during the 5-year review. This

table includes the following information:

CPT/HCPCS (HCFA Common Procedure Coding System) code. This

is the CPT or alphanumeric HCPCS code for a service.

Modifier. A modifier -26 is shown if the work RVUs

represent the professional component of the service.

Description. This is an abbreviated version of the

narrative description of the code.

1995 work RVUs. The work RVUs that appeared in the

December 8, 1994 final rule are shown for each reviewed code.

Requested work RVUs. This column identifies the work RVUs

requested by commenters. We received more than one comment on some

codes, and, in a few of these cases, the commenters requested different

RVUs. If the comment was sent to the RUC, the table lists the RVUs sent

to the RUC. The letters ``CPT'' indicate that the commenter requested

that the code be referred to the CPT Editorial Panel. For some codes,

we received no specific RVU recommendations. Some of these codes are

included in the review because of rank order anomaly issues within a

family of codes. An asterisk indicates a code identified by the RUC as

potentially overvalued. The RVUs shown have not been adjusted for

budget neutrality.

RUC recommendation. This column identifies the work RVUs

recommended by the RUC. A letter in this column indicates that the

comment was rejected and not sent to the RUC. An ``A'' indicates that

the comment was covered by another comment. A ``B'' indicates that the

comment was not helpful. A ``C'' indicates that no change was

requested. A ``D'' indicates a misinterpretation of the code. An ``E''

indicates that the comment was withdrawn by the commenter. The letters

``CPT'' indicate that the RUC has referred this code to the CPT

Editorial Panel for further clarification. A ``Z'' indicates that these

services have no physician work and were not subject to the 5-year

review. For a general discussion of these codes, see section II.C.5.

(codes without work relative value units). The letters ``POS'' indicate

that the code is potentially overvalued.

HCFA Decision. This column indicates whether we agreed

with the RUC recommendation (``agreed''); we are proposing work RVUs

that are higher than the RUC recommendation (``increased''); or we are

proposing work RVUs that are less than the RUC recommendation

(``decreased''). Codes for which we did not accept the RUC

recommendation are discussed in greater detail following Table 1. An

(a) in this column indicates that in the absence of a RUC

recommendation we are proposing to maintain the present work RVUs. A

(b) in this column indicates that this code is being considered in the

1996 refinement process.

Proposed work RVUs. This column contains the proposed RVUs

for physician work. The absence of proposed work RVUs indicates that

comments on these codes were rejected or withdrawn and the work RVUs

for these codes are not changing as a result of the 5-year review. The

work RVUs shown have not been adjusted for budget neutrality.

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B. Discussion of Comments by Clinical Area

1. Integumentary System

Comment: Numerous specialty societies surveyed and commented on the

CPT codes for the integumentary system that they believed were

undervalued or overvalued. In several instances, specialty societies

were responding to reductions proposed by other commenters. The

specialty societies' recommendations were supported with survey data

and arguments that were based on changes in the patient population,

changes in technology, and rank-order anomalies. Survey samples were of

sufficient size to validate the results. Additionally, specialty

societies made cross-specialty comparisons to similar procedures. The

comparisons gave support to arguments and survey data.

RUC Evaluation/Recommendation: Generally, the RUC found the data,

comparisons, and arguments convincing. The RUC looked for compelling

evidence that the procedure had changed, the patient population had

changed, or the code had been originally undervalued or overvalued.

When the RUC recommended different work RVUs, it typically attempted to

reconcile new survey data and rationale with Harvard data, producing

final recommended work RVUs. In all, the RUC recommended that the work

RVUs for 6 codes be reduced in value, for 15 codes be increased in

value, and for 35 codes be maintained at the current value.

HCFA Decision: We agree with the RUC on most of its findings, but

we have rejected the RUC recommendations for the following eight

integumentary system codes:

CPT codes 15570 through 15576 (Formation of direct or tubed

pedicle, with or without transfer).

There are four codes in this family that are used to report the

formation of direct or tubed pedicles in different body areas. We

received a comment that all of these codes are undervalued when

compared to the corresponding adjacent flap codes, CPT code 14001 with

7.78 work RVUs, CPT code 14021 with 9.37 work RVUs, and CPT code 14040

with 7.18 work RVUs.

In its recommendation to us, the RUC indicated that several old

codes, CPT codes 15500 through 15515, which were valued by Harvard,

were deleted in 1992 and replaced with CPT codes 15570 through 15576.

The RUC also noted that the new codes are misvalued and that no

explanation had been received describing how the work RVUs of these

codes were determined. The current survey results show median work RVUs

of 9.85 and a median intraservice time of 105 minutes for CPT code

15570; median work RVUs of 9.63 and a median intraservice time of 90

minutes for CPT code 15572; median work RVUs of 10.50 and a median

intraservice time of 120 minutes for CPT code 15574; and median work

RVUs of 8.50 and a median intraservice time of 90 minutes for CPT code

15576. These results agree with the Harvard data for the original

codes, CPT codes 15500 through 15515. Based on the survey results and

the lack of rationale for the current work RVUs, the RUC recommended

that the codes be valued at the same level established by Harvard for

the original deleted codes.

We have not accepted the RUC recommendations for two reasons.

First, the RUC's understanding of the source of the work RVUs for the

current codes is incorrect and second, we believe the vignettes that

were surveyed may have led to an overestimation of the work.

These four codes first appeared in CPT 1992, following a revision

of this section of CPT. The codes do not correspond directly to the

deleted codes (CPT codes 15500 through 15515) cited by the RUC because

other codes (CPT codes 15540 through 15555 and 15700 through 15730)

also were deleted and crosswalked to the new codes. Because we viewed

the coding change as significant, we did not accept the work RVUs

developed by Harvard for CPT codes 15500 through 15515 as a valid basis

for the new codes. We proposed work RVUs for the current CPT codes

15540 through 15555 in the November 25, 1991 final rule for the 1992

physician fee schedule (56 FR 59502). Because the comments that we

received suggested that the proposed work RVUs were too low, we

referred the codes to one of the multispecialty refinement panels that

met in May 1992. Based on the ratings of that panel, no changes were

made in the work RVUs, and they became final work RVUs effective

January 1, 1993.

The vignettes that were surveyed by the RUC describe patient

problems and services that we believe may have led to an overestimation

of the work involved in the formation of direct or tubed pedicles. For

example, the vignette for CPT code 15574 reads:

A 56-year-old hunter sustains a gun shot injury to his left

hand. He is brought to the hospital and initial debridement,

fracture stabilization and temporary wound cover is accomplished

with dressing changes. A tailored groin flap is planned for coverage

of the dorsal defect. At operation, a random patterned groin flap is

elevated. The hand is, again, thoroughly debrided and lavaged, and

the groin flap is placed. The abdominal wound is closed by primary

advancement of the abdominal skin. The postoperative care is routine

until either further delay or separation occurs.

The preservice work is described as including an assessment of the

patient in the emergency room. The intraservice work is described as

including the creation of a special dressing to maintain the relative

positions of the hand, the flap, and the abdominal wall. We are

concerned that the survey respondents may have considered the work of

debridement, fracture stabilization, initial emergency room evaluation,

and immobilization of the hand, flap, and abdomen in their estimates of

work. If so, the work RVUs are excessive because those other services

can be reported and paid separately. Therefore, we are maintaining the

current work RVUs.

CPT code 15580 (Cross finger flap, including free graft to donor

site).

We received a comment that this code is undervalued when compared

to CPT code 15240 (Skin full graft procedure) and CPT code 15100 (Skin

split graft procedure). It was argued that the current work RVUs do not

account for the intraservice time and work involved in harvesting and

applying the skin graft. Survey data showed a median intraservice time

of 90 minutes and median work RVUs of 9.00. The RUC recommended that

the work RVUs be increased based on the survey results and its

conclusion that the comparison to skin graft procedures was

appropriate.

We have not proposed a change in the work RVUs for this code

because we are concerned that CPT is not clear regarding the separate

reporting of a graft to the donor site, and the vignette may have led

to an overestimation of work. There is a note in the introductory

paragraphs for the flap codes that states: ``Repair of donor site

requiring skin graft or local flaps is considered an additional

separate procedure.'' This contradicts the terminology of CPT code

15580 and could be a source of confusion.

The vignette that was used in the survey reads: A 36-year-old

laborer sustains an avulsion injury of the volar aspect of the

middle of phalanx of the left index finger in a grinding machine.

The profundus tendon is intact and the neurovascular bundles are

intact. At operation, a cross finger pedicle flap from the dorsum of

the adjacent left middle phalanx is elevated and rotated downward

and placed on the volar aspect of the adjacent finger. The donor

site defect was reconstructed with a full thickness skin graft

harvested from the left groin. Both the pedicle and the skin graft

were sewn in place. The postoperative care is routine for that of a

split thickness skin graft.

[[Page 20020]]

The preservice work is described as including an assessment of the

patient in the emergency room. The description of the intraservice work

includes thorough debridement and immobilization of the fingers in a

specially constructed dressing to remove tension from the flap by

preventing motion.

We are concerned that the survey respondents may have considered

the work of debridement, initial emergency room evaluation, and

immobilization of the fingers in their estimates of work. If so, the

work RVUs are excessive because the other services can be reported

separately. Therefore, we are maintaining the current work RVUs.

CPT codes 17000, 17001, and 17002 (Destruction by any method of

benign facial or premalignant lesions in any location).

An individual who underwent the destruction of skin lesions

commented that the physician charges for these procedures were

excessive. He stated that the application of liquid nitrogen is not

time consuming and is an insignificant cost and that the physician work

involved is minimal and does not require great skill. We forwarded the

comment to the RUC. The specialty society recommended to the RUC that

the work RVUs for these codes be maintained.

The RUC responded by indicating that the intention of the RUC and

the 5-year review is to examine work RVUs. The RUC concluded that the

comment we forwarded was based on charges the commenter incurred, a

matter which is not directly related to the mission of the RUC.

Therefore, the RUC recommended that the current work RVUs be

maintained.

We acknowledge that part of the individual's comments related to

the charges he incurred. However, we believe that the commenter raised

a legitimate concern about the amount of physician work when he made

reference to the amount of time, physician involvement, and skill

required to destroy a skin lesion. Therefore, we reexamined the work

RVUs assigned to these codes and concluded they are too high when

compared to other services on the fee schedule. CPT code 17000

(Destruction of a single benign facial or premalignant lesion)

currently has work RVUs that are approximately 3.5 times higher than

the work RVUs assigned to the destruction of a second similar lesion

(CPT code 17001). There are no other services with such a variance. A

more appropriate valuation of CPT code 17000 would set the initial

lesion destruction at about twice the level of the work RVUs for a

subsequent lesion. Therefore, we are proposing 0.36 work RVUs. This

downward revaluation of CPT code 17000 is supported by comparing the

proposed work RVUs to the following reference services: CPT code 11700

(Debridement of nails), with 0.32 work RVUs, and CPT code 11050 (Paring

of skin lesion), with 0.43 work RVUs. These services are comparable to

CPT code 17000 in terms of setup time, procedure time, risk, and

aftercare.

We also believe that CPT code 17001 (Destruction of second and

third benign facial or premalignant lesion, each) and CPT code 17002

(Destruction of over three lesions, each additional lesion) are

overvalued. We propose to reduce the work RVUs of these codes to 0.14.

The proposed work RVUs for these codes would maintain approximately the

same ratio to CPT code 17101, with 0.11 work RVUs, and CPT code 17102,

also with 0.11 work RVUs, as CPT code 17000, with 0.64 work RVUs, now

has to CPT code 17100, with 0.53 work RVUs, that is, about 1.2. In

other words, we believe the current relative relationship of work RVUs

for the destruction of benign facial or premalignant lesions (CPT code

17000) to the work RVU for the destruction of benign lesions in areas

other than the face (CPT code 17100) is correct but the work RVUs are

too high.

Additionally, we are concerned that there is an inconsistency in

the current CPT coding for these two groups of codes. For benign non-

facial lesion destruction, CPT code 17104 is only reported once for any

number of lesions numbering 15 or more. There is not currently a

parallel code for benign facial or premalignant lesions, and there is

no limitation on the number of times CPT code 17002 can be reported for

lesions removed during a single visit. Also, we did not receive

comments on all of the destruction codes so we have not addressed in

this notice other destruction of skin lesion codes that appear to be

overvalued. We plan to address our concerns regarding the coding and

work RVUs for those services in the future.

2. Orthopaedic Surgery

Originally, the American Academy of Orthopaedic Surgeons submitted

a study of 1,300 orthopaedic services conducted by Abt Associates, Inc.

for review during the 5-year review. In addition, the American Academy

of Orthopaedic Surgeons submitted detailed comments on 41 procedures.

The Abt study involved a combination of a telephone survey of randomly

selected orthopaedic surgeons and multiple consensus panels comprised

of orthopaedic subspecialists and generalists. The American Academy of

Orthopaedic Surgeons considered the work RVUs that resulted from the

study to be much more appropriately aligned than the current work RVUs.

In addition, the American Academy of Orthopaedic Surgeons believed that

the work RVUs in the current scale are compressed at both the low and

the high end, whereas the Abt values expand the scale in both

directions.

The American Academy of Orthopaedic Surgeons stated that the

Harvard study underestimated the intraservice work of many of the

services its members furnish. The commenter was particularly concerned

that the work RVUs for many of the services are based on a survey of

general orthopaedic surgeons with little or no experience performing

highly specialized services normally provided by subspecialists within

orthopaedic surgery, such as pediatric orthopaedic surgeons. For

example, Harvard included general orthopaedic surgeons in the survey

for CPT code 28262 (Capsulotomy, midfoot; extensive, including

posterior talotibial capsulotomy and tendon(s) lengthening as for

resistant clubfoot deformity) while the American Academy of Orthopaedic

Surgeons surveyed pediatric orthopaedic surgeons with much more

experience performing the procedure. The American Academy of

Orthopaedic Surgeons' survey confirmed that the Harvard study had

underestimated intraservice time.

The RUC reviewed the methodology used by Abt and concluded that the

RUC should consider a survey of representative codes using Abt's

methodology to validate the relationship of the Abt-developed work RVUs

to RUC-developed work RVUs. Instead, the American Academy of

Orthopaedic Surgeons elected to withdraw the Abt study and the comments

on 41 codes. The American Academy of Orthopaedic Surgeons also elected

to conduct a survey of the work involved in 83 codes that it believed

were misvalued in accordance with the RUC process. The American Academy

of Orthopaedic Surgeons involved 11 national orthopaedic subspecialty

organizations in this survey.

The RUC reviewed and recommended increases in work RVUs for 37 of

the 83 codes presented by the American Academy of Orthopaedic Surgeons.

The RUC reviewed an additional 15 services based on comments from the

American Academy of Pediatrics, the American Society of Plastic and

Reconstructive Surgeons, and other commenters. In general, the RUC did

not accept recommendations for increased work RVUs when the American

Academy of

[[Page 20021]]

Orthopaedic Surgeons' survey time data were similar to Harvard data or

when the reference services cited were not appropriate. The RUC

recommended increased work RVUs to correct rank-order anomalies in

codes for which the American Academy of Orthopaedic Surgeons' surveys

confirm that the intraservice time for the procedure was underestimated

in the Harvard study and the patient population had changed in the past

5 years.

The RUC also reviewed and recommended decreases for 10 of the 12

following orthopaedic services, which the RUC identified as potentially

overvalued based on special analyses of trends in claims data and the

intensity (work per unit of time) of the intraservice work. This

intensity of intraservice work is expressed as IWPUT, which is an

acronym for intraservice work per unit time.

------------------------------------------------------------------------

CPT

code Descriptor

------------------------------------------------------------------------

25065.. Biopsy, soft tissue of forearm and/or wrist; superficial.

26992.. Incision, deep, with opening of bone cortex (e.g., for

osteomyelitis or bone abscess), pelvis and/or hip joint.

27001.. Tenotomy, adductor of hip, subcutaneous, open.

27003.. Tenotomy, adductor, subcutaneous, open, with obturator

neurectomy.

27006.. Tenotomy, adductors of hip, subcutaneous, open (separate

procedure).

27040.. Biopsy, soft tissue of pelvis and hip area; superficial.

27090.. Removal of hip prosthesis (separate procedure).

27265.. Closed treatment of post hip arthroplasty dislocation; without

anesthesia.

27266.. Closed treatment of post hip arthroplasty dislocation;

requiring regional or general anesthesia.

27323.. Biopsy, soft tissue of thigh or knee area; superficial.

27550.. Closed treatment of knee dislocation; without anesthesia.

64763.. Transection or avulsion of obturator nerve, extrapelvic, with

or without adductor tenotomy.

------------------------------------------------------------------------

The description of, and rationale for, these decreases is included

in section II.C.7. of this notice, which contains the discussion of the

entire group of services identified as potentially overvalued.

HCFA Decision: We have accepted all of the RUC recommendations for

the orthopaedic surgery codes.

3. Otolaryngology and Maxillofacial Surgery

The American Academy of Otolaryngology--Head and Neck Surgery, Inc.

submitted a study conducted for it by Abt Associates, Inc. that covered

800 codes, 417 of which are considered to be primary otolaryngology

codes, and 100 of which were discussed in detailed comments for the 5-

year review. The 100 codes represent approximately 10 percent of the

universe of otolaryngolog--head and neck surgery services. The comments

reflect the opinions of about 40 American Academy of Otolaryngology--

Head and Neck Surgery, Inc. members with expertise in the services

chosen. The American Academy of Oral and Maxillofacial Surgeons and the

American Society of Plastic and Reconstructive Surgeons, Inc. also

submitted comments and presented recommendations to the RUC for some of

the codes discussed in this section.

The RUC reviewed the methodology used by Abt and concluded that the

RUC should consider a survey of representative codes using RUC

methodology to validate the relationship of the Abt-developed work RVUs

to the RUC-developed work RVUs. The American Academy of

Otolaryngology--Head and Neck Surgery, Inc. surveyed and submitted

recommendations for 53 codes using the RUC methodology. The survey

response rate was low for many of the codes for which we originally

received comments during the public comment phase and, therefore, the

American Academy of Otolaryngology--Head and Neck Surgery, Inc. chose

to withdraw these codes from the RUC review.

The RUC was concerned by the lack of compelling evidence for

changing many of the services presented by the American Academy of

Otolaryngology--Head and Neck Surgery, Inc. and recommended that their

current work RVUs be maintained. The RUC identified several problems

with these services: Survey results for preservice and postservice time

appeared to be overstated; inappropriate reference services with

different global periods were used; the only arguments were that the

patient population presented increased risk of HIV and hepatitis to the

physician, the patients had previous radiation treatment, and

acceptable vocal cord capability is now more important to patients. In

addition, commenters made many recommendations to increase the current

work RVUs, but the American Academy of Otolaryngology--Head and Neck

Surgery, Inc. data were very similar to the Harvard time data. The RUC

also did not find the argument that the IWPUT was understated, without

any other evidence, a compelling reason to increase the work RVUs.

The RUC recommended increased work RVUs for 30 codes to correct

rank-order anomalies, address problems when American Academy of

Otolaryngology--Head and Neck Surgery, Inc. surveys confirm that the

intraservice time for the procedure was underestimated in the Harvard

study, and when the patient population had changed in the past 5 years

making the services more complex.

HCFA decision: We have accepted the RUC recommendations for work

RVUs for 24 of the codes but have rejected its recommendations for the

following 6 codes: CPT code 21025 (Excision of bone, lower jaw).

The current work RVUs are 5.03. A commenter recommended an increase

to 8.98 work RVUs since this code is similar to CPT code 24134 (Removal

of arm bone lesion). The RUC noted that a rank anomaly exists between

this service and CPT code 21030 (Excision of benign tumor or cyst of

facial bone other than mandible) and CPT code 21041 (Excision of benign

cyst or tumor of mandible; complex). The American Academy of Oral and

Maxillofacial Surgeons' survey median for intraservice time is 120

minutes, which is significantly higher than CPT code 21041 and

reference service CPT code 24134. Thus, the RUC recommended that the

American Academy of Oral and Maxillofacial Surgeons' survey median of

8.92 work RVUs be adopted.

We believe that the surveyed vignette does not represent the

typical patient, and it includes services for which other codes can be

reported. The vignette describes a patient with intraoral and extraoral

swelling and suppuration from multiple fistulae. Dissection of the

inferior alveolar nerve is required and hyperbaric oxygen is initiated.

We believe this vignette describes a patient with much more extensive

infection than the typical patient. It is also our view that CPT code

21030, which has 7.05 work RVUs, is more difficult than this procedure.

Therefore, we are retaining the current 5.03 work RVUs for CPT code

21025. CPT codes 31531, 31536, 31541, 31561, and 31571 (Operative

laryngoscopies).

We received comments that CPT codes 31541, 31561, and 31571 are

undervalued because of increased patient complexity and greater

emphasis on acceptable vocal results. The RUC did not find those

arguments compelling enough to suggest a change in work RVUs.

However, the RUC identified rank order anomalies in the work RVUs

for direct laryngoscopies and the corresponding procedures using an

operating microscope. Among the five

[[Page 20022]]

pairs of procedures, the difference in work RVUs for use of the

operating microscope varies from -0.57 to +0.34 work RVUs. The RUC

recommended retaining the 1995 work RVUs for the direct laryngoscopies

(CPT codes 31530, 31535, 31540, 31560, and 31570) and adding a constant

0.40 work RVUs to arrive at the work RVUs for the corresponding

procedures using an operating microscope (CPT codes 31531, 31536,

31541, 31561, and 31571).

We disagree with the concept of increasing the work RVUs for

procedures using an operating microscope and believe that the work RVUs

for a procedure generally should be the same, regardless of the

technique used. For example, the destruction of skin lesions (CPT codes

17000 through 17105) are valued the same regardless of the method of

destruction. Therefore, we have established work RVUs that are the same

for both codes in a pair.

4. Podiatry

The American Podiatric Medical Association submitted comments on

services that its members frequently perform that may be

inappropriately valued. The organization's comments were based on

surveys of the members of the organization representing the spectrum of

foot and ankle services, as well as geographic diversity. In addition,

the organization relied on data from two previous national surveys on

preservice and intraservice care prepared by the American Podiatric

Medical Association for the Physician Payment Review Commission.

The American Podiatric Medical Association submitted

recommendations to the RUC for review in two formats: surveyed services

with completed summary of recommendation forms and a letter detailing

rationale for those services they did not survey. The Association also

commented on 13 codes that it considers to be overvalued.

RUC Evaluation/Recommendation: The RUC's position was that the

American Podiatric Medical Association had not provided compelling

evidence for changing the work RVUs for any of the services for which

no survey was conducted. Neither did the RUC find surveys that only

confirmed the Harvard survey times to be sufficient evidence to justify

change. However, the survey data for CPT codes 28113 and 28288 and

HCPCS code M0101 persuaded the RUC to recommend increases in the work

RVUs for these services. The RUC also did not concur with the American

Podiatric Medical Association's comment about overvalued procedures and

recommended that the current work RVUs be maintained.

HCFA Decision: We have accepted all but one of the RUC's 20

recommendations for podiatry (19 resulting from the American Podiatric

Medical Association's comments and one to maintain a rank order between

codes): HCPCS code M0101 (Cutting or removal of corns).

The current work RVUs are 0.37. A commenter recommended that we

increase the work RVUs to 0.70 based on the view that this service is

significantly more difficult than the work for CPT code 11050 (Paring

or curettement of benign hyperkeratotic skin lesion with or without

chemical cauterization (such as verrucae or clavi) not extending

through the stratum corneum (e.g., callus or wart) with or without

local anesthesia; single lesion), which is valued at 0.43 work RVUs,

and CPT code 11700 (Debridement of nails, manual; five or less), which

is valued at 0.32 work RVUs. The preservice work is slightly greater

than reference procedures CPT codes 11050 and 11700, but the

intraservice work was reported by a survey as 250 percent greater than

either reference procedure. The commenter stated that the technical

skill for these services is similar; however, physical effort is much

greater for HCPCS code M0101. The RUC agreed that HCPCS code M0101

involves more work than treating 2 skin lesions and trimming 10

toenails and that this service is undervalued. It proposed 0.45 work

RVUs. We disagree with these proposed work RVUs. The description of

this service is ``cutting or removal of corns, calluses and/or trimming

of nails, application of skin creams and other hygienic and preventive

maintenance care (excludes debridement of nail(s).''

We believe that the service most reported by this code is trimming

of nails, which is of less intensity than the work associated with

cutting or removal of corns and calluses. The typical service involves

the less intense portions of this complex definition. The surveys

conducted by the American Podiatric Medical Association used vignettes

of patients with circulatory impairment and neurologic deficit

accompanying systemic disease. The existence of these comorbid

conditions may not accurately reflect the work RVUs for the typical

patient. Although current Medicare coverage is restricted to the more

difficult patients with coexisting disease, we base the work RVUs on

the typical patient. The RUC survey methodology is based on vignettes

that are intended to describe the typical patient and service. In this

case, we believe the vignette describes an unusual or atypical patient

which results in an RVU recommendation that exceeds the current work

RVUs. We believe that the usual service of trimming of nails is less

work than the paring or curettement of other less common procedures

such as benign hyperkeratotic skin lesions and, therefore, have decided

to maintain the current 0.37 work RVUs.

5. Cardiology and Interventional Radiology

The RUC considered comments submitted by the Society of

Cardiovascular and Interventional Radiology, the Society of Critical

Care Medicine, and the American College of Cardiology on 25 cardiology

and interventional radiology procedures.

The Society of Cardiovascular and Interventional Radiology reported

to the RUC that it did not conduct a RUC survey. The Society of

Cardiovascular and Interventional Radiology sent a survey containing

all of the interventional radiology codes to 60 interventional

radiologists that asked the physicians to evaluate the 1995 work RVUs

for each code and select those codes that they believed were misvalued.

For the codes selected, the respondents were instructed to indicate

which CPT code they believed more accurately described the service in

terms of time and intensity. These responses were evaluated by a small

working group formed by the Society of Cardiovascular and

Interventional Radiology consisting of physicians that are familiar

with CPT, work RVUs, and the RUC process. Those codes that were

identified by the working group as misvalued were the codes upon which

that society commented. In its comments to us and during the RUC

presentation, the Society of Cardiovascular and Interventional

Radiology mentioned that the physician work for vascular ultrasound

studies is equal to all other diagnostic ultrasound services, including

those in the abdomen, chest, pelvis, retroperitoneum, and heart. The

work RVU recommendations are based on work RVUs for either ``limited''

or ``complete'' ultrasound examinations in those areas.

HCFA Decision: We have accepted all but two of the RUC

recommendations for the cardiology and interventional radiology codes:

CPT codes 93307 and 93312, both for echo exam of heart.

CPT code 93307 (Echocardiography, real-time with image

documentation (2D) with or without M-Mode recording; complete).

We received a comment that the field of echocardiography has

changed significantly in the past 5 years, in both

[[Page 20023]]

clinical utility and diagnostic complexity. Although the technical

innovations of the past 5 years have made this an easier service to

perform, the patients that require this service are more complex, which

has resulted in an increased amount of physician work. The physicians

are viewing and making judgments on constantly moving objects, which

increases the possibility of misinterpretation. Often this service is

furnished in acute care settings or emergency situations, which

increase physician stress. The information derived from this study is

used in the development of critical management decisions. The risk of

misdiagnosis, in both emergent and nonemergent situations, can lead to

potentially fatal events.

The current work RVUs for echocardiography are 0.78. The RUC agreed

that the code is undervalued based on the amount of physician work that

is required to perform this study and the increased amount of

information that can now be derived from echocardiography. However, the

RUC believed that the specialty society recommendation of 1.48 work

RVUs was too high and recommended the Harvard value for this procedure,

which was 1.06 work RVUs.

We do not agree that echocardiography is undervalued. We believe

that technical innovations have made physician interpretations of

echocardiograms less difficult than in the past. We also believe that

some of the work that is being reported as physician work is actually

the work of technicians. For example, the description of intraservice

work provided to the RUC implies that physicians review entire tapes

and analyze and measure the structure and dynamics of the chambers,

valves, and great vessels. It is our understanding that much of this

information is prepared by technicians for subsequent review by

physicians. We consider the work of technicians to be a practice

expense that is reflected in the practice expense RVUs, not the

physician work RVUs. We also question whether the vignette surveyed by

the specialty society, which describes an echocardiogram performed on

an acutely ill patient in need of emergency echocardiography,

represents the typical patient requiring echocardiography. Medicare

claims data from calendar year 1995 indicate that 50 percent of claims

for CPT code 93307 are billed with place of service as office or

outpatient hospital and 49 percent are billed with place of service as

inpatient hospital. This suggests that the typical patient is not

critically ill or that there is a bimodal distribution of patients.

CPT code 93312 (Echocardiography, real-time with image

documentation (2D) (with or without M-Mode recording), transesophageal;

including probe placement, image acquisition, interpretation and

report).

We received a comment that transesophageal echocardiography is

undervalued in comparison to other services that require similar

physician work effort and that performance of this procedure requires

considerable mental effort. As described above in the discussion of CPT

code 93307, the heart is constantly moving, increasing the possibility

of misinterpretation, which could lead to misdiagnosis. There is an

added technical skill required by the physician to insert the probe

into the esophagus and the stomach of a critically ill patient. This

procedure is often performed in the emergency setting while the patient

is under conscious sedation. As a point of reference, the RUC reviewed

Harvard Phase III data that show 2.76 work RVUs (adjusted to be on a

scale equivalent to 1995 work RVUs) for upper gastrointestinal

endoscopy (CPT code 43235), the reference code being used in this

comparison. These work RVUs are higher than both the existing 1.57 work

RVUs and the 2.39 work RVUs recommended by the specialty society. The

RUC agreed with the specialty society rationale and recommended an

increase to 2.39 work RVUs.

For reasons similar to those described above for CPT code 93307, we

do not believe that transesophageal echocardiography is undervalued.

This service was considered by a refinement panel in 1993, and, based

on the ratings of the panel, the RVUs were not increased. We do not

find the new evidence submitted by the RUC to be sufficient to warrant

an increase in RVUs.

6. General Surgery, Colon and Rectal Surgery, and Gastroenterology

The review of general surgery procedures primarily addressed

comments submitted by the American College of Surgeons on codes

identified as misvalued through a study conducted by Abt Associates,

Inc. Although this study identified many procedures as potentially

misvalued, the American College of Surgeons' comments selected only 30

codes for review, based on the magnitude of the potential change and

their frequency and expenditures. The American College of Surgeons

recommended both increases and decreases.

The American Society of General Surgeons also submitted comments on

a number of procedures, including several general surgery procedures,

and their suggestions were consistent with some of those made by the

American College of Surgeons.

The American Society of Colon and Rectal Surgeons submitted

comments indicating that the partial colectomy codes and

hemorrhoidectomy codes should be reviewed to place them in a more

correct rank-order from least to most difficult. Other commenters also

identified rank-order problems in these families and further identified

three overvalued procedures. The American Society of General Surgeons

recommended that the work RVUs for several colon and rectal procedures

be increased.

Comments were submitted by the American College of Gastroenterology

and another commenter on several gastroenterology codes.

Of the 30 codes on which the American College of Surgeons

commented, the RUC recommended adopting most of the recommended

decreases and a few of the recommended increases, based on results from

a survey of 175 surgeons, comparisons to the final Harvard study

results, comparisons to key reference services, and analysis of

Medicare claims data.

The current work RVUs for several of the codes identified by the

American Society of General Surgeons, however, are based on recent RUC

recommendations, and, in the absence of new evidence, the RUC did not

believe reconsideration was warranted for these codes.

The RUC agreed with most of the changes recommended by the American

Society of Colon and Rectal Surgeons based on the evidence provided by

the Society.

The RUC did not believe compelling new evidence had been provided

to support either an increase or a decrease in the work RVUs for the

gastroenterology codes on which the American College of

Gastroenterology commented. The RUC has previously reviewed most work

RVUs for the gastroenterology procedures and has recently considered

the evidence for adjusting these work RVUs and did not find the

evidence to be persuasive.

HCFA Decision: We have accepted all but one of the RUC

recommendations for general surgery, colon and rectal surgery, and

gastroenterology codes: CPT code 43830 (Place gastrostomy tube).

The current work RVUs are 4.84. A commenter noted that an anomaly

exists

[[Page 20024]]

between CPT code 43750 (Place gastrotomy tube), which is assigned 5.71

work RVUs, and CPT code 43830 since the latter procedure is more

complex. The commenter recommended 7.50 work RVUs. The RUC noted that

the Harvard data indicate that the IWPUT for CPT code 43750 is 0.082,

while it is 0.059 for CPT code 43830. Since CPT code 43830 is much more

complex than CPT code 43750, the IWPUT is the reverse of the

appropriate relationship. The RUC recommended 7.50 work RVUs for CPT

code 43830.

We relied on Harvard work RVUs to reestablish the proper

relationship by accepting the decrease recommended by the RUC for CPT

code 43750 and increasing CPT code 43830 to 6.52 work RVUs. We rejected

the RUC recommendation of 7.50 work RVUs for CPT code 43830 as too high

since this recommendation would value placement of a gastronomy tube

higher than CPT code 49507 (Repair of an inguinal hernia), which is

assigned 7.40 work RVUs and appear to approximate the work of placing a

gastrostomy tube.

7. Urology

Commenters advocated reductions in about 40 urology-related CPT

codes. In most cases, commenters based their rationale on comparisons

to cross-specialty procedures. Work RVUs were reduced to the level of

the work RVUs of the cross-specialty procedure. The commenters also

attempted to link the reduction of one code in a family to other codes

in an effort to maintain the reduction of work RVUs throughout the

family. Typically, the response of the American Urological Association

was to survey the code and to refute the cross-specialty link

established by the commenters. The rationale established by the

American Urological Association was generally compelling in that it was

based on anatomical, technical, and patient-population differences that

proved the cross-specialty comparisons to be faulty. Usually, the

American Urological Association's arguments were supported by survey

data that validated their claims when compared to Harvard data. In many

instances, surveyed intraservice time was greater than the Harvard data

showed, and work RVUs turned out to be greater than established 1995

work RVUs.

RUC Evaluation/Recommendation: The RUC examined the American

Urological Association's arguments against the cross-specialty links

and proposed work RVU reductions. They evaluated the aspects of the

arguments and typically came to the conclusion that the reference

procedures chosen for comparison by the commenters were inappropriate.

The RUC also analyzed survey data to determine if time and complexity

measures were sufficient to support the arguments of the American

Urological Association. The RUC also looked at time and complexity

gains to ascertain if increased work RVUs were necessary. The basis for

many of the comments was comparison between urology codes and codes in

other specialties. As part of its review, the RUC compared several

urology codes to other procedures on its multiple points of comparison

reference set based on the IWPUT. The urology codes proved to be well

within expected levels. For example, CPT code 50010 (Exploration of

kidney) has an IWPUT of 0.094, which compares to CPT code 93510 (Left

heart catheterization), with an IWPUT of 0.099; CPT code 26531 (Revise

knuckle with implant), with an IWPUT of 0.090; CPT code 66984 (Remove

cataract, insert lens), with an IWPUT of 0.121; or CPT code 61700

(Inner skull vessel surgery), with an IWPUT of 0.088. CPT code 54200

(Treatment of penis lesion) has an IWPUT of 0.038, which compares to

CPT code 11642 (Removal of skin lesion), with an IWPUT of 0.047; CPT

code 45110 (Removal of rectum), with an IWPUT of 0.061; or CPT code

46260 (Hemorrhoidectomy), with an IWPUT of 0.049. Generally, the RUC

found that the recommended reductions were not appropriate, but that

rationale and data were also not sufficiently compelling to support

specialty-recommended increased work RVUs. As a result, the RUC

recommended that 37 of the 46 codes be maintained at 1995 levels.

HCFA Decision: We have accepted all but three of the RUC

recommendations for the urology codes: CPT code 50205 (Biopsy of

kidney).

The current work RVUs are 12.69. A commenter recommended a decrease

to 6.75 work RVUs since the procedure requires no more work, time, or

effort than CPT code 47100 (Wedge biopsy of liver), which is assigned

6.75 work RVUs. In addition, the commenter argued, this procedure is

incorrectly valued relative to kidney exploration; the biopsy should be

lower than an exploration. The RUC noted that most renal biopsies are

not open but percutaneous procedures; however, CPT code 50205 is an

open procedure. Survey data show median intraservice time of 75 minutes

and median work RVUs of 18.50. Although the American Urological

Association recommended increasing the work RVUs up to the survey

median, the RUC found no compelling evidence to increase the work RVUs.

We rejected the RUC recommendation to retain the current work RVUs

and have assigned 10.50 work RVUs, a value slightly greater than CPT

code 50010 (Exploration of the kidney) to reflect the added work of the

open procedure biopsy.

CPT code 50590 (Lithotripsy, extracorporeal shock wave).

The current work RVUs are 9.62. A commenter recommended a reduction

to 6.54 work RVUs based on an argument that this is not a surgical

procedure. The commenter compared the intraservice work to 1 hour of

critical care. The proposed work RVUs also include two hospital visits

(CPT codes 99221 and 99231) and 2.5 level-three office visits (CPT

99213). The RUC believed that this procedure is similar to a surgical

procedure in that anesthesia is used and a urologist is always present.

The RUC concluded that the current work RVUs should not be reduced

based on its analysis of survey data showing a median intraservice time

of 80 minutes.

We disagree with the RUC recommendation to maintain the 9.62 work

RVUs. We believe the intraservice intensity of extracorporeal shock

wave lithotripsy is more comparable to evaluation and management

services than traditional surgical services. For example, the current

9.62 work RVUs are higher than those for an exploratory laparotomy (CPT

code 49000), with 8.99 work RVUs. We have assigned 7.13 work RVUs to

CPT code 50590 based on 90 minutes of critical care (CPT codes 99291

and 99292), with work RVUs of 3.64 and 1.84, respectively, and three

mid-level office visits (CPT code 99213), with 0.55 work RVUs.

CPT code 51741 (Electro-uroflowmetry, first).

The current work RVUs are 1.57. A commenter recommended a reduction

to 1.14 work RVUs to bring the code into correct alignment with the

family of codes. The RUC recommended no change in the current work

RVUs. We believe that a reduction in work RVUs to 1.14 is appropriate

to maintain the proper relationship to CPT code 51736 (Urine flow

measurement), which the RUC reduced from 0.84 work RVUs to 0.61 work

RVUs.

8. Gynecology

Comment: The American College of Obstetricians and Gynecologists

has had significant and longstanding concerns about the accuracy of the

work RVUs assigned for obstetric and gynecologic services. The American

College of Obstetricians and Gynecologists believed that the work RVUs

for services furnished to women have been historically undervalued when

[[Page 20025]]

compared to similar services on men or on similar anatomical

structures. The American College of Obstetricians and Gynecologists

presented survey data and arguments for 45 codes, 44 of which

recommended increased work RVUs. In addition to providing survey data,

the American College of Obstetricians and Gynecologists developed

rationales based on a ``building block'' method using survey data on

service characteristics and work RVUs of established codes. The

building block method also uses preservice, postservice, and

intraservice work intervals to assign physician work RVUs to the

individual components of the global surgical services package.

Appropriate work RVUs for preservice and postservice intervals for the

evaluation and management services were selected based on length of

time, number of visits, clinical setting, and judgment of level of care

required. Using this method, the American College of Obstetricians and

Gynecologists was able to arrive at work RVU estimates for surgical

codes with a variety of global periods.

The survey data in almost every case supported an increase in work

RVUs. The surveys had a minimum survey sample size of 100 and response

rates in excess of 30 percent. The surveyed intraservice times were

consistently substantially greater than Harvard intraservice times. The

work RVUs that were derived from a survey were in every case greater

than the established work RVUs. When the building block method was

used, it produced results that confirmed the survey data and argued for

increased work RVUs. The American College of Obstetricians and

Gynecologists used cross-specialty comparisons to validate both survey

data and its building block method. Cross-specialty comparisons were

especially convincing when direct parallels could be drawn to similar

services on men or similar procedures to manage like disease in

different organs.

RUC Evaluation/Recommendation: The RUC found the multiple

independent points of validation convincing. The survey, building

block, and cross-specialty comparisons typically supported the claim

for increased work RVUs. Generally, the RUC was skeptical of the

building block approach. The RUC believed that there was too much room

for subjective selection of the type and level of evaluation and

management services. The RUC also recognized that double counting and

overestimation of work components may yield results for which the sum

of the parts exceeds the whole. Typically, the RUC accepted the lowest

work RVU increase generated by the three methods.

HCFA Decision: We have accepted all of the RUC recommendations for

the gynecology codes.

9. Neurosurgery

Comment: The American Association of Neurological Surgeons/Congress

of Neurological Surgeons submitted comments identifying 73 misvalued

services, both undervalued and overvalued. The comments presented a

detailed history of the work RVUs for neurosurgery, identifying several

problems in the methodology and results of the original Harvard study,

particularly in the change from intraoperative work to total work in

the cross-specialty linkage process and in review by refinement panels.

The commenter attributed the basic problem to the Harvard cross-

specialty linkage process, arguing that it caused distortions and

compressions of work RVUs within the neurosurgery services. Although

this was corrected to some degree in Phase III of the Harvard study,

the 1992 refinement panels did not accept many of the final Harvard

numbers for neurosurgical procedures. Even the final Harvard data

contain errors in data on postservice work, and the study often does

not assume any intensive care unit visits when at least several would

be furnished by the neurosurgeon.

Most of the arguments presented focus on the nontemporal components

of physician work, described as ``intensity.'' The commenters explained

that the current work RVUs do not accurately reflect the varying levels

of intensity for different neurosurgical procedures, nor within the

different components of each service. To identify the specific codes

that are misvalued in the current scale, the American Association of

Neurological Surgeons/Congress of Neurological Surgeons conducted a

survey in 1994. This organization surveyed a representative sample of

200 neurosurgeons to evaluate in detail the time and intensity of the

key reference services for neurosurgery in accordance with our

discussion of the nature and format of comments on work RVUs that

appeared in our December 8, 1994 final rule (59 FR 63454 to 63455). The

survey did not ask physicians to reevaluate the total work RVUs for

these procedures. The time data gathered from this study, which

included detailed operative logs on over 1,500 neurosurgical patients,

were found to correspond closely to the final Harvard Phase III data,

and the American Association of Neurological Surgeons/Congress of

Neurological Surgeons concluded that the survey validated the Harvard

results for this component of work. The study also attempted to

directly measure mental effort and judgment, technical skill and

physical effort, and psychological stress, rather than calculating it

as a ratio of work to time. This allowed for more variation within each

component of intensity and greater precision in calculating work RVUs.

This research confirmed the problems initially identified by the

American Association of Neurological Surgeons/Congress of Neurological

Surgeons that, for some of the most complex procedures, preservice and

postservice work were underestimated by 30 to 40 percent.

The focus of the American Association of Neurological Surgeons/

Congress of Neurological Surgeons' comments was on appropriately

valuing the codes within neurosurgery by adjusting the rank-orders

upwards and downwards. To develop its recommendations to the RUC, the

American Association of Neurological Surgeons/Congress of Neurological

Surgeons conducted a second survey in 1995, which led the RUC to make

some adjustments in the recommended work RVUs. In addition, the

American Association of Neurological Surgeons/Congress of Neurological

Surgeons identified five more misvalued codes that had not been

mentioned in its original comments.

RUC Evaluation/Recommendation: The RUC evaluated the approach used

to calculate the recommended work RVUs and considered it to be

reasonable. There was some discussion of ``lumping'' vs. ``splitting,''

because the American Association of Neurological Surgeons/Congress of

Neurological Surgeons' methodology of measuring intensity ``splits'' it

out from overall work. On the other hand, the time periods used by the

American Association of Neurological Surgeons/Congress of Neurological

Surgeons were the same as those used by Harvard, and the time estimates

were based on objective data, not on surgeons' opinions about how much

time they spend doing each component of work. In fact, for a number of

the services studied by the American Association of Neurological

Surgeons/Congress of Neurological Surgeons, the resulting work RVUs

tended to validate the final work RVUs from the Harvard study. For

example, CPT code 61480 (Craniectomy, suboccipital; for mesencephalic

tractotomy or pedunculotomy) currently has 16.77 work RVUs, but the

final Harvard work RVUs for the service are 25.55, and the neurosurgery

study

[[Page 20026]]

produced a recommended 25.03 work RVUs.

The effort appeared to the RUC more as an attempt to bring a higher

degree of precision to the work RVUs for neurosurgery than to split

work into more components in order to inflate the work RVUs. The

recommended reductions in some higher frequency codes bolstered this

perception (for example, CPT code 63030 (Laminotomy (hemilaminectomy),

with decompression of nerve root(s), including partial facetectomy,

foraminotomy and/or excision of herniated intervertebral disk; one

interspace, lumbar) was reduced from 12.11 to 11.10 work RVUs and had a

frequency of 29,103 in 1994). In addition, a number of very low

frequency services, including some pediatric codes, were included in

the analysis and recommendations (for example, CPT code 61480

(Craniectomy, suboccipital; for mesencephalic tractotomy or

pedunculotomy), which had zero claims in 1994). Services that are both

highly specialized and very infrequently furnished may not have

received sufficient attention in the Harvard study.

To evaluate the results of this approach, the RUC workgroup, which

included a general surgeon, an ophthalmologist, and a psychiatrist,

first selected a number of the codes and calculated two ratios: (1)

recommended total work RVUs/intraservice time, and (2) recommended

total work RVUs/total time. The results of this analysis were very

consistent with one another and with other codes with work RVUs, with

nearly all of the codes having a ratio of work RVUs to total time of

about 0.05 and ratios of work RVUs to intraservice work time of 0.10 to

0.14. The highest intraservice work ratio was 0.178 for CPT code 61700

(Surgery of intracranial aneurysm, intracranial approach; carotid

circulation), with 48.30 recommended work RVUs. The results were

considered appropriate because of the extremely complex and difficult

nature of the service, when compared both to other codes within the

family of intracranial vascular codes and to other major neurosurgical

services.

The RUC then selected several of the codes for comparison with

codes on the multiple points of comparison with which they were

familiar:

CPT code 61682 (Surgery of intracranial arteriovenous

malformation; supratentorial, complex), with 59.47 recommended work

RVUs, was compared with CPT code 33870 (Transverse aortic arch graft),

which has 37.74 work RVUs. This service involves the surgical efforts

to obliterate and remove a congenital vascular malformation from within

the brain, frequently deep within a cerebral hemisphere. Many of the

issues that contribute to the high complexity of CPT code 61700 also

apply to this service, although preservice and postservice work

complexity is somewhat lower. This service requires 420 minutes of

intraoperative time, however, compared to 270 minutes for CPT code

61700.

CPT code 67107 (Repair of retinal detachment), with 13.99

work RVUs, was compared to CPT code 61875 (Implantation of

neurostimulator electrodes), with 13.79 recommended work RVUs. The

intraservice work ratio for retinal detachment is 0.13 and the total

work ratio is 0.049; for the neurosurgery code the intraservice work

ratio is 0.115 and the total work ratio is 0.04. The ratio comparisons

and the work and time involved in each service appear to be correct.

CPT code 67107 involves 107 minutes of intraoperative time, and CPT

code 61875 involves 120 minutes of intraoperative time. The final

Harvard work RVUs for CPT code 61875 are 14.06.

The comparison of CPT code 61702 (Surgery of intracranial

aneurysm), with 46.31 recommended work RVUs, to CPT code 48150 (Partial

removal of pancreas), with 42.53 work RVUs, also seems correct, since

CPT code 61702 involves surgery of a vertebral or basilar artery

aneurysm and has the same high levels of mental effort, technical

skill, and stress/risk outlined above for CPT code 61700.

The RUC concluded that the neurosurgery study produced work RVU

recommendations that are considerably more precise than the current

work RVUs for these services.

Three of the codes surveyed by the American Association of

Neurological Surgeons/Congress of Neurological Surgeons were also the

subject of other comments and were therefore reviewed individually by

the RUC:

For CPT code 61791 (Creation of lesion by stereotactic

method, percutaneous, by neurolytic agent (e.g., alcohol, thermal,

electrical, radiofrequency); trigeminal medullary tract) with 7.29 work

RVUs, the commenters recommended an increase to 13.29 work RVUs because

the service is substantially more difficult than CPT code 61790, which

is the same service performed on the gasserian ganglion, with 10.31

work RVUs. The RUC recommended a somewhat higher increase to 13.99 work

RVUs rather than the 13.29 work RVUs recommended by commenters. The

Harvard work RVUs for this service are 14.28.

For CPT code 62290 (Injection procedure for diskography,

each level; lumbar), with 3.58 work RVUs, we received a comment

recommending a reduction to 2.05 work RVUs, which would be 25 percent

more than the work RVUs for CPT code 62289 (Injection of substance

other than anesthetic, antispasmodic, contrast, or neurolytic

solutions; lumbar or caudal epidural (separate procedure)). The

American Association of Neurological Surgeons/Congress of Neurological

Surgeons argued that CPT code 62289 is a poor reference for CPT code

62290 because the techniques are not very comparable and the targets

and risks are different. The RUC agreed with this argument. The

American Association of Neurological Surgeons/Congress of Neurological

Surgeons stated that CPT code 62291 (Injection procedure for

diskography, each level; cervical), with 2.91 work RVUs, is a better

reference. The specialty society stated that CPT code 62290 should be

reduced from 3.58 to 3.00 work RVUs to allow for the fact that lumbar

diskography is inherently more difficult than cervical diskography and

still maintain the correct rank-order of the current work RVUs.

For CPT code 64443 (Injection, anesthetic agent;

paravertebral facet joint nerve, lumbar, each additional level), with

1.35 work RVUs, commenters recommended the code be valued at 50 percent

of CPT code 64442 (Injection, anesthetic agent; paravertebral facet

joint nerve, lumbar, single level) because it is an add-on code and

does not involve preservice and postservice work. Although the general

rule is that about 50 percent of the work is intraservice work and 50

percent is preservice and postservice work, this, however, does not

hold true for many minor procedures. In fact, the work RVUs for CPT

code 64443 were already reduced significantly when the global period

was changed in 1994. For these two codes (CPT code 64442 and CPT code

64443), the ratio is approximately 61 percent. The RUC recommended,

therefore, that the work RVUs for CPT code 64443 be reduced to 0.98

from 1.35, but not to 0.78, as recommended by the commenter.

The RUC believed it is important to add all of the codes identified

by the American Association of Neurological Surgeons/Congress of

Neurological Surgeons to the 5-year review in order to have correct

rank-ordering of codes across neurosurgical procedures. In addition,

the RUC considered recommending that all the neurosurgery codes in the

5-year review be rescaled so that the net effect of the changes in work

RVUs would be zero to make the

[[Page 20027]]

changes work-neutral. Although the American Association of Neurological

Surgeons/Congress of Neurological Surgeons recommended changes in a

very large number of codes, the overall impact of the recommendations

is relatively small. An AMA analysis using 1994 frequency data found

that acceptance of the recommended changes would only increase Medicare

expenditures by about $3.8 million. The RUC recommended, therefore,

that all the suggested changes be adopted without any rescaling.

HCFA Decision: We have accepted all but one of the RUC

recommendations for the neurosurgery codes: CPT code 61793

(Stereotactic focused proton beam or gamma radiosurgery).

The RUC recommended an increase in work RVUs from 16.70 to 17.88.

We disagree with this recommendation, which is based in large part on a

calculation of the intraservice time components by the American

Association of Neurological Surgeons rather than on the surveyed time.

The calculated time was 210 minutes, while the surveyed time was 120

minutes. We are concerned that the calculated intraservice time

includes specific elements that are described and reported by codes in

the radiation oncology section of CPT. For example, the calculated time

includes 15 minutes for ``stereotactic images processed by dose

planning computer using dose planning module for optimal dosimetry''

and 15 minutes for ``planned dose tested in radiosurgical device to

assure correct targeting and dosimetry.'' In view of our concern, we

have decided to maintain the current 16.70 work RVUs.

10. Ophthalmology

The American Academy of Ophthalmology and the American Optometric

Association responded to comments requesting that the work RVUs for 11

cataract-related codes be reduced. In addition, the American Academy of

Ophthalmology surveyed several codes and recommended work RVU

increases. Arguments supporting increased work RVUs relied on surveys,

comparisons to cross-specialty codes, and rationale claiming that

procedures have changed and now require adjusted work RVUs. The

response rates and resulting samples were of sufficient size to produce

valid results.

Generally, the RUC found the data, comparisons, and arguments

convincing. The RUC was looking for compelling evidence that the

procedure had changed, the patient population had changed, or the code

had been originally undervalued or overvalued. When the RUC recommended

different work RVUs, it typically attempted to reconcile new survey

data and rationale with Harvard data. This approach produced final

recommended work RVUs below those recommended by the specialty society.

In all, the RUC proposed that the work RVUs be reduced for 7 codes,

increased for 12 codes, and maintained at the current value for 29

codes.

HCFA Decision: We have accepted all but one of the RUC

recommendations for the ophthalmology codes: CPT code 66821 (Discission

of secondary membranous cataract (opacified posterior lens capsule and/

or anterior hyaloid); laser surgery (e.g., YAG laser) (one or more

stages)).

We referred a comment to the RUC which stated that this service is

overvalued and that the work RVUs should be reduced to 2.30. The basis

of this recommendation was that the technical skill and intensity of

work for CPT code 66821 are significantly lower than for CPT code 66820

(Incision, secondary cataract). In addition, the intraservice time is

less, and the number of outpatient visits during the global period are

fewer.

The RUC reviewed the survey data which showed a median intraservice

time of 11 minutes and median work RVUs of 3.42. The intraservice skill

and complexity were considered to be comparable to those of CPT code

66761 (Revision of iris) and CPT code 67031 (Laser surgery, eye

strands). The RUC concluded that the survey data and comparisons were

sufficiently compelling to reject the commenter's recommended decrease

in work RVUs. The RUC recommended that the current work RVUs be

maintained.

We disagree. On a related matter, we had forwarded a comment to the

RUC that the cataract codes were overvalued because the procedures

typically can be performed in a shorter period of time than the 54

minutes in the Harvard data. However, we accepted the surveyed median

intraservice time of 50 minutes presented to the RUC for cataract

surgery as the basis for not reducing the work RVUs. Applying the

intraservice work intensity of the cataract procedure (CPT code 66984)

to the 11 minutes of surveyed intraservice time for the YAG laser

procedure results in 2.15 work RVUs, which we are proposing for CPT

code 66821. We believe this comparison is appropriate because we do not

believe that the intensity of a YAG laser procedure is greater than the

intensity of a cataract extraction.

For information on eye visit codes, see the discussion of the

evaluation and management codes in section II.C.1. of this notice.

11. Imaging

The RUC considered public comments submitted by the American

College of Radiology, the American College of Cardiology, and the

Society for Cardiovascular and Interventional Radiology. The American

College of Radiology cited nine radiology codes that it believed are

misvalued. The American College of Radiology noted that a

multidisciplinary approach was used to identify these nine procedures.

Specifically, radiologists in each specialty of radiology were asked to

review the procedures they perform and determine whether or not the

work RVUs reflect the difficulty of the procedure. A multidisciplinary

panel of radiologists and the American College of Radiology Commission

on Economics then reviewed the selected procedures. The panel

determined that it could present an adequate case for reconsideration

of the work RVUs for these nine procedures.

We received many comments which generally stated that radiology

codes were overvalued. The most common reasons given were the

following: Plain film studies are relatively overvalued compared to

more complex radiographic procedures; ultrasound studies are

overvalued; and the most common computerized axial tomography and

magnetic resonance imaging studies are overvalued. A comment also

suggested that plain film studies appeared overvalued relative to

evaluation and management services. Other comments suggested that

simple planar procedures such as aortography should be decreased to

equate the readings of these films with equivalent noncontrast studies;

magnetic resonance imaging should be revalued to reflect easier

interpretations with contrast material; and both magnetic resonance

imaging and computerized axial tomography scans should be similar for

all anatomic locations.

As part of its report outlining the work RVU recommendations to the

RUC, the American College of Radiology prepared a comprehensive

rebuttal of the comments. Specifically, the American College of

Radiology noted that the current physician work RVUs for plain film

studies accurately reflect the work involved in the procedure and,

therefore, should be maintained. Contrary to the comments, the RUC

concluded, plain film studies are not overvalued relative to more

complex radiographic studies. The American College of Radiology survey

data supported the fact that the

[[Page 20028]]

interpretation of plain film studies requires more time than the

evaluation and management CPT code 99212 (Office/outpatient visit,

established patient) to which those studies were most often compared.

The RUC also recommended that the current work RVUs assigned to

codes involving the use of contrast material should be retained since

they require more physician work than those not involving the use of

contrast. When contrast is used, physicians must interpret more images,

with a concomitant increase in work. Time data and intensity analysis

prepared by the American College of Radiology confirm the fact that the

current work RVUs for computerized axial tomography scans reflect the

physician work involved. The American College of Radiology also noted

that the number of images varies by the site that is being imaged

during a computerized axial tomography scan, which rebuts the

commenters' notion that the work RVUs for this scan be the same

regardless of site. The American College of Radiology reported that the

presence of contrast material increases the physician work of magnetic

resonance imaging since the physician must visualize the anatomy in

greater detail, therefore, increasing the complexity of the

interpretation.

RUC Evaluation/Recommendation: The RUC believed that extensive

evidence presented by the American Society of Radiology compellingly

supported maintaining the current work RVUs. The RUC agreed with all of

the recommended changes based on evidence that was presented by the

American College of Radiology. For the codes that were presented by the

Society for Cardiovascular and Interventional Radiology, although the

RUC agreed that the services were undervalued, the RUC did not believe

that the Society for Cardiovascular and Interventional Radiology

presented compelling evidence for the requested increases. Instead, the

RUC suggested increased work RVUs, but lower than the specialty society

recommended.

HCFA Decision: We have accepted all of the RUC recommendations for

the imaging codes.

12. Cardiothoracic and Vascular Surgery

The American Society of General Surgeons and the Society of

Thoracic Surgeons stated that the Harvard study did not appropriately

value lung procedures. In particular, the commenters stated that the

Harvard study had estimated, rather than directly measured, preservice

and postservice times and that the current RVUs do not reflect the

physician work involved in maintaining proper hemodynamics during

initiation of anesthesia, stabilizing the patient for transfer to the

recovery room, and accumulating sufficient evidence that immediate

reoperation or other intervention for bleeding, impaired circulation,

or air leak is not needed. The Society of Thoracic Surgeons also

commented on several cardiac operations that it believed have become

more complex over time and recommended slight increases in 11 coronary

artery bypass graft procedures.

Generally, the RUC did not consider evidence that the Society of

Thoracic Surgeons provided sufficiently compelling to support increases

in the work RVUs for the thoracic procedures identified in its comment.

Also, the RUC has already reviewed most of these services, and any

changes in work since the Harvard study would have been reflected in

the RUC's 1993 recommendations. However, the RUC agreed that increases

were warranted in two of the cardiac surgery procedures, CPT code 33426

(Repair of mitral valve) and CPT code 33875 (Thoracic aorta graft),

which have become more complex over the last 5 years.

The International Society for Cardiovascular Surgery/The Society

for Vascular Surgery described a number of problems in the current work

RVUs for vascular surgery procedures, many of which are the result of

the lack of any distinct study of vascular surgical procedures or

vascular surgeons in the Harvard study. This lack of a study could have

particularly deleterious effects for the Medicare program because

Medicare patients account for an exceptionally high percentage of total

patients seen by vascular surgeons. The commenter stated, for example,

that no vascular surgeons were included in the Harvard Technical

Consulting Groups. It also described errors in the Harvard vignettes,

which could have resulted from the absence of vascular surgeons on the

Harvard Technical Consulting Groups and led to incorrect data. The

commenter also noted that some adjustments were made in these services

for the 1993 work RVUs based on an Abt study, but that further

refinements are needed. Finally, the commenter reported the results of

an effort to obtain intraoperative times from 10 hospitals for 9

vascular procedures and 11 other codes selected from the list of

reference procedures. This study found that, while data on nonvascular

surgeries corresponded closely to existing Harvard and RUC data for the

services, for vascular surgeries the current data were 20 percent lower

than the hospital reported times. The American Society of General

Surgeons also commented on two vascular surgical procedures, CPT code

34201 (Removal of artery clot) and CPT code 35654 (Artery bypass

graft).

The RUC found that the International Society for Cardiovascular

Surgery/Society for Vascular Surgery offered compelling reasons to

review the current work RVUs for selected vascular surgery procedures.

The RUC did not adopt the particular approaches or proposed RVUs

recommended by the International Society for Cardiovascular Surgery/

Society for Vascular Surgery, however.

The Society for Cardiovascular and Interventional Radiology, the

American College of Surgeons, the American Society of Hematology, the

American Thoracic Society, the International Society for Cardiovascular

Surgery/Society for Vascular Surgery, and the American Society of

General Surgeons commented on nine other cardiovascular procedures.

The RUC agreed with the Society of Cardiovascular and

Interventional Radiology that there are anomalies in the current work

RVUs for CPT codes 36215, 36218, 36245, and 36248, all of which are

codes for placing a catheter in an artery. The RUC recommended an

adjustment in the current work RVUs for CPT codes 36215 and 36245 to

make them equal and recommended a change in the global period for CPT

codes 36218 and 36248 to maintain consistency within this family. The

RUC adopted the increase recommended by the general and vascular

surgeons for CPT code 36830 (Creation of arteriovenous fistula by other

than direct arteriovenous anastomosis (separate procedure);

nonautogenous graft). For the remainder of the codes in this group, the

RUC did not believe the commenters presented sufficient evidence to

support an increase and recommended that the current work RVUs be

maintained.

HCFA Decision: We have accepted all of the RUC recommendations for

the cardiothoracic and vascular surgery codes.

13. Pathology and Laboratory Procedures

Commenters identified numerous pathology and laboratory procedure

codes as being overvalued.

The review of pathology and laboratory procedures primarily focused

on the codes that commenters identified as overvalued. In response to

the comments, the College of American Pathologists provided

recommendations to the RUC to maintain or increase the RVUs for these

codes. Based on survey results, comparisons to the final

[[Page 20029]]

Harvard study results, comparisons to key reference services, and

analysis of Medicare claims data, the RUC believed that the College of

American Pathologists provided compelling evidence for maintaining the

current work RVUs of these procedures and, for CPT code 86327

(Immunoelectrophoresis assay), for increasing the work RVUs from their

current level.

Comment: The American Society of Hematology provided

recommendations to the RUC on the following five codes:

------------------------------------------------------------------------

CPT

code Descriptor

------------------------------------------------------------------------

36520.. Therapeutic apheresis (plasma and/or cell exchange).

38230.. Bone marrow harvesting for transplantation.

85390.. Fibrinolysins or coagulopathy screen, interpretation and

report.

86077.. Blood bank physician services; difficult cross match and/or

evaluation of irregular antibody(s), interpretation and

written report.

86079.. Blood bank physician services; authorization for deviation from

standard blood banking procedures (e.g., use of outdated

blood, transfusion of Rh incompatible units), with written

report.

------------------------------------------------------------------------

RUC Evaluation/Recommendation: Based on survey results and

comparisons to key reference services, the RUC recommended increasing

the work RVUs of all five codes; however, in two instances the RUC did

not believe that the specialty society had provided enough evidence to

support adopting the increase that the specialty society recommended.

Comment: The Medical Oncology Association of Southern California,

Inc. requested increased work RVUs for CPT code 85095 (Bone marrow,

aspiration only) and CPT code 85102 (Bone marrow biopsy; needle or

trocar).

RUC Evaluation/Recommendation: Since the Medical Oncology

Association of Southern California, Inc. presented no evidence to

support the comment, the RUC recommended maintaining the current work

RVUs of these codes.

HCFA Decision: We have accepted all but two of the RUC

recommendations for the pathology and laboratory procedures codes: CPT

code 85390 (Fibrinolysins screen).

The current work RVUs are 0.37. We received conflicting comments on

this code. One commenter recommended that the work RVUs be reduced on

the basis that a fibrinolysin screen requires less time and expertise

than the interpretation of CPT code 71021 (Chest x-ray), which is

assigned 0.22 work RVUs with a Harvard study time of 5 minutes. Another

commenter requested an increase to 1.19 work RVUs. The commenter

compared this service to CPT code 88331 (Pathology consult in surgery),

which has 1.19 work RVUs and a Harvard time of 20 to 24 minutes. The

RUC noted that this procedure has never been surveyed and the current

work RVUs were established by HCFA. The RUC agreed that the physician

work of furnishing this service has changed during the past few years.

The clinical problems presented by patients are more complex, the tests

are more technical, and the physician is required to perform more

tests. However, the RUC did not believe that these changes warranted an

increase to 1.20 work RVUs. Instead, the RUC believed that the service

is comparable in physician work to the key reference service CPT code

88305 (Tissue exam by pathologist), which has 0.75 work RVUs.

Therefore, the RUC recommended 0.75 work RVUs.

Clinical laboratory tests are covered by the Medicare program and

paid for under the clinical laboratory fee schedule; performance of the

test itself does not require the services of a physician and does not

have physician work associated with it. However, we have recognized

that there are a limited number of clinical laboratory codes for which

it is almost always necessary for the laboratory physician to furnish

an interpretation, and we have assigned 0.37 work RVUs to these

interpretations. We are not persuaded that the work has changed over

time. The vignette used to survey this code appeared to represent

service well beyond interpretation of a single test and seemed to

describe a typical consultation. CPT code 80502 (Lab pathology

consultation) describes the surveyed vignette and is valued at 1.33

work RVUs, which is similar to the 1.20 work RVUs from the RUC survey.

Therefore, we have retained the current 0.37 work RVUs for CPT code

85390.

CPT code 86327 (Immunoelectrophoresis assay).

The current work RVUs are 0.37. Pathology interpretation of

laboratory tests was originally valued at 0.37 work RVUs. (See comment

for CPT code 85390 above.) We are not persuaded that the work has

changed over time. The vignette used to survey this code appeared to

represent service well beyond interpretation of a single test and

seemed to describe a typical consultation. CPT code 80502 (Lab

pathology consultation) describes the surveyed vignette and is valued

at 1.33 work RVUs, which is similar to the 1.20 work RVUs from the RUC

survey.

14. Psychiatry

The American Psychiatric Association and the American Academy of

Child and Adolescent Psychiatry submitted comments on psychiatric

services. Both societies commented that the current physician fee

schedule has not preserved the original work-value relationships

developed by Harvard. It was their view that if the relative value of

the code for 45 minutes of psychotherapy (CPT code 90844) is changed,

all other values in the psychiatric section of CPT should be changed to

preserve the original relationship with the psychotherapy code. The

societies contended that our failure to maintain the relative

relationships among the psychiatric codes that were surveyed by Harvard

has resulted in the undervaluation of all psychiatric services.

The American Psychiatric Association made five other specific

comments:

Psychotherapy service CPT codes 90842, 90843, and 90844

represent three bundled services (continuing medical evaluation,

medication management, and psychotherapy).

Psychotherapy codes that are time dependent, especially

CPT code 90844, have inappropriately low work RVUs as a result of

undervaluing of time as a dimension of work.

The nature of psychotherapy services has become more

intensive since the development of the existing work RVUs.

The preservice and postservice work for psychiatric

services is undervalued.

CPT code 90844 is inappropriately linked to CPT code 99204

(Office or other outpatient visit for the evaluation and management of

a new patient). The American Psychiatric Association argued in its

comments that CPT code 90844 requires that the physician spend 45 to 50

minutes of face-to-face time with a patient. In contrast, CPT code

99204 can routinely last less than 45 minutes.

Based on a combined survey of 250 physicians, clinical

psychologists, and nurses, the American Psychiatric Association

presented recommendations for 18 psychiatric codes. The American

Psychiatric Association, in its comments and during its presentation to

the RUC, presented the following evidence to support increasing the

work RVUs of the psychiatric codes:

Patient type and mix have changed dramatically during the

past 5 years. The American Psychiatric Association reported that before

1990, for the most part, ``stable'' patients were seen in an office

outpatient setting. Patients that

[[Page 20030]]

were considered unstable, and otherwise hard to manage, were treated as

inpatients, allowing the physician to coordinate with the hospital

staff, if necessary. In the past, patients tended to seek treatment

earlier and physicians were able to make referrals to psychiatrists

earlier. The onset of managed care has increased the likelihood that

many patients are referred to nonphysician mental health providers,

which has translated into psychiatrists treating only the severely ill

patient.

Decreasing inpatient hospital admission has resulted in

increased patient morbidity. Again, the American Psychiatric

Association noted that shifting insurance industry patterns have played

a significant role in this trend. Although many insurance policies

offer mental health coverage, the coverage is often very restrictive.

For example, most policies have strict limits on the number of

inpatient hospital days. Many managed care policies have shifted away

from long-term psychotherapy in favor of short intermittent treatment

therapies.

Since many more patients are seen on an outpatient basis,

there is an increasing amount of coordination of care with other

providers. The American Psychiatric Association noted that the time

spent dealing with coordination of care issues has resulted in an

increase of physician preservice and postservice work.

During the past 5 years, new, highly sophisticated

neuroleptic and antidepressant medications have been introduced. The

American Psychiatric Association noted that, because of the advances in

psychopharmacology, a greater number of individual psychotherapy

patients will likely utilize these medications than was the case 5

years ago. The greater reliance on these medications has increased the

complexity of the medical decision making during an individual

psychotherapy visit. Many of these new drugs require constant

monitoring, such as weekly blood monitoring in the case of Clorazil.

The failure to monitor these drugs appropriately could result in

adverse side effects and possibly death.

The psychotherapy codes have specific times incorporated

into the CPT descriptor that do not accurately reflect the current

practice of psychiatry. The American Psychiatric Association noted that

the practice of psychiatry has changed significantly since the

psychotherapy codes were surveyed during the Harvard study; therefore,

the current RVUs should be increased to reflect this change.

The RUC reviewed 18 services in the psychiatry section of CPT. For

13 of those services, the RUC recommended no change from the current

work RVUs. For the other five services, the RUC believed that the five

points cited by the American Psychiatric Association provide a

compelling argument for increasing the work RVUs from their current

levels. The RUC also concluded that the survey vignettes that the

specialty society used describe the ``typical patient'' in 1995. In two

instances, a commenter recommended lowering the current work RVUs of

psychiatric services. In both instances, the RUC concluded that the

specialty society provided compelling evidence for maintaining the

current work RVUs for those codes.

HCFA Decision: We agree with the RUC recommendations not to change

the current work RVUs for 13 psychiatric services. We disagree with the

RUC that there is compelling evidence to increase the work RVUs of the

remaining 5 psychiatric services (CPT codes 90801, 90843, 90844, 90853,

and 90855). As a result, we will maintain the current work RVUs for all

18 psychiatric services. The 1996 work RVUs are slightly higher than

the 1995 work RVUs because, effective January 1, 1996, we bundled the

work RVUs for CPT codes 90825 and 90887 across CPT codes 90801, 90820,

90835, 90842 through 90847, and 90853 through 90857.

15. Other Medical and Therapeutic Services

Comment: We received isolated comments regarding purportedly

overvalued miscellaneous diagnostic and therapeutic procedures such as

biofeedback, esophageal motility studies, pulmonary testing, and

intralesional chemotherapy.

RUC Evaluation/Recommendation: Based on recommendations from the

National Association of Medical Directors of Respiratory Care, the

American Thoracic Society, the American College of Chest Physicians,

the Joint Council of Allergy, Asthma and Immunology, and the American

Academy of Electrodiagnostic Medicine, the RUC recommended maintaining

the current work RVUs of most of the procedures that were identified by

commenters. These recommendations were based on survey results,

comparisons to final Harvard study results, comparisons to key

reference services, and analysis of Medicare claims data.

Comment: The American Academy of Neurology submitted a comment on

CPT code 95951 (Monitoring for identification and lateralization of

cerebral seizure focus by attached electrodes; combined

electroencephalographic (EEG) and video recording and interpretation,

each 24 hours) recommending an increase in work RVUs from 3.80 to 6.75.

RUC Evaluation/Recommendation: The requested work RVUs were amended

to 6.00 based on results of the survey by the American Academy of

Neurology. The RUC held the view that the survey results provided

sufficient evidence to warrant increasing the work RVUs for the

procedure. This recommendation was based on a survey of 60

neurologists, comparisons to final Harvard study results, and

comparisons to key reference services.

Comment: The Medical Oncology Association of Southern California,

Inc. submitted work RVU recommendations for the following CPT codes:

------------------------------------------------------------------------

CPT

code Descriptor

------------------------------------------------------------------------

96440.. Chemotherapy administration into pleural cavity, requiring and

including thoracentesis.

96445.. Chemotherapy administration into peritoneal cavity, requiring

and including peritoneocentesis.

96450.. Chemotherapy administration into CNS (e.g., intrathecal),

requiring and including lumbar puncture.

------------------------------------------------------------------------

RUC Evaluation/Recommendation: The RUC recommended maintaining the

current work RVUs for these three chemotherapy codes. These

recommendations were based on the fact that the RUC had recently

reviewed one of the procedures and the fact that Medicare Part B data

showed that the other chemotherapy procedures are infrequently

performed.

HCFA Decision: We have accepted all but one of the RUC

recommendations for other medical and therapeutic services: CPT code

90911 (Anorectal biofeedback).

The current work RVUs are 2.15. A commenter recommended a reduction

to 0.93 work RVUs since this procedure lacks the intensity of CPT code

90937 (Hemodialysis, repeated evaluation) or CPT code 90801

(Psychiatric interview). CPT code 46606 (Anoscopy and biopsy) requires

less time but presents a greater risk than CPT code 90911. The RUC

recommended retaining the current work RVUs since the procedure is

lengthy, taking a minimum of 30 minutes but typically lasting 45 to 60

minutes. The RUC's view was that the procedure is more intense and

requires more work than CPT code 46606. The RUC considers that this

procedure is

[[Page 20031]]

similar in its intensity to CPT code 90801.

In our assessment, the RUC recommendation is too high. Other

biofeedback procedures are valued at 0.89 work RVUs. This procedure

involves little physician work and is similar to other biofeedback

procedures; therefore, we have assigned 0.89 work RVUs.

16. Speech/Language/Hearing

Comment: The American Speech-Language-Hearing Association and the

American Academy of Audiology submitted comments on the following CPT

codes:

------------------------------------------------------------------------

CPT

code Descriptor

------------------------------------------------------------------------

92506.. Speech & hearing evaluation.

92507.. Speech/hearing therapy.

92508.. Speech/hearing therapy.

92541.. Spontaneous nystagmus test.

92542.. Positional nystagmus test

92544.. Optokinetic nystagmus test.

92545.. Oscillating tracking test.

92546.. Sinusoidal rotational test.

92585.. Auditory evoked potential.

------------------------------------------------------------------------

In general, these commenters expressed concern regarding our

payment policies for audiologists and speech pathologists. These

organizations stated that the current practice expense component does

not accurately reflect the technical work that is involved in

performing the services. In addition, the American Academy of Audiology

noted that the current physician fee schedule includes zero work RVUs

for audiology services, even though the Harvard study included

physician work RVUs for these codes.

The American Speech-Language-Hearing Association and the American

Academy of Otolaryngology--Head and Neck Surgery, Inc. had originally

wanted to survey these services; however, they have now requested that

the codes be withdrawn from further consideration.

RUC Evaluation/Recommendation: A majority of these codes have been

revised for CPT 1996, and the RUC submitted work RVU recommendations to

us in May 1995. The distinction between physician work RVUs and work

recognized as practice expenses such as the labor component of

audiology services is addressed in section II.C.5. of this notice.

Because interim work RVUs, which are subject to public comment, were

established in January 1996, and final work RVUs will be established

for 1997, we are not considering these codes in the 5-year review.

Comment: Commenters stated that CPT code 92512 (Nasal function

studies (e.g., rhinomanometry)) is similar to CPT code 94060

(Bronchospasm evaluation: spirometry as in 94010, before and after

bronchodilator (aerosol or parenteral) or exercise), with 0.31 work

RVUs.

RUC Evaluation/Recommendation: The RUC noted that nasal function

studies are performed to evaluate the normal or abnormal function of

the nose. Rhinomanometry is a nasal function study that measures the

flow and pressure of air through the nose. It enables the physician to

assess the degree of obstruction, if any, that may be present in the

nasal passages. Anterior rhinomanometry measures air flow in the front

of the nasal cavity and is performed by inserting flexible air tubes

into each nostril. The tubes are connected to a device that measures

the amount and pressure of air that flows through them as the patient

breathes. The physician records measurements of air flow and, from

these, calculates the degree of obstruction. CPT code 94060 is a

distinctly different test, which uses spirometry to measure exhaled gas

and record the time of collection. CPT code 94060 is less intense and

requires less physician time than CPT code 92512. Therefore, the RUC

recommended that the current work RVUs be maintained.

HCFA Decision: We have accepted all of the RUC recommendations for

the speech, language, and hearing codes.

C. Other Comments

1. Evaluation and Management Services

We received numerous comments requesting review of evaluation and

management services. Most of the comments focused on office visits,

hospital visits, and consultations. The commenters offered three major

reasons for requesting that the work RVUs for these evaluation and

management services be reviewed:

The physician work involved in these services has

increased since the initial Harvard study of RVUs was conducted. As a

mechanism to control costs over the past 10 years, there has been

increased pressure to treat patients in the office rather than the

hospital or emergency room. Patients are being discharged from the

hospital sooner. As a result, the typical patient seen in the office

and in the hospital is more complex than the patient seen in the mid-

1980's. Also, the preservice and postservice work has changed due to

the following factors:

+ Increased documentation requirements.

+ Time and effort required for obtaining or providing

authorizations for tests and referrals.

+ Higher patient expectations and an increasingly well informed

patient population.

+ Increased coordination with other health professionals and family

members.

+ Increased patient education regarding issues such as fall

prevention and adverse drug reactions.

Evaluation and management services are undervalued

relative to most other procedures. The highest level evaluation and

management services require a ``comprehensive examination'' and

``medical decision making of high complexity,'' yet the assigned work

RVUs for these services are lower than for procedures that involve less

time, less mental effort and judgment, and less technical skill and

physical effort. An analysis of intraservice work per unit time

(intensity) by one commenter found that the intensity of 96 percent of

the services paid under the physician fee schedule exceeded the

existing intensity of evaluation and management services. The existing

intensities were calculated by dividing the work RVUs by the typical

time of the CPT codes for evaluation and management services.

The current CPT codes for evaluation and management

services were never directly surveyed or studied in the Harvard RVU

study. The Harvard study conducted its survey from 1986 through 1988;

the new CPT codes were published in 1992. At the time of the Harvard

surveys, evaluation and management services were not defined based on

the level of history, examination, and medical decision making. A

crosswalk from the old CPT codes to the new CPT codes was used to

establish work RVUs. Also, the preservice and postservice work was not

directly surveyed, nor was postservice work defined.

We forwarded these comments to the RUC. The RUC agreed with the

commenters that an in-depth review of the work involved in office and

hospital visits and consultations was warranted. We also referred

comments suggesting that the work RVUs for nursing facility visits and

home visits should be reviewed.

After reviewing selected evaluation and management services, the

RUC found the evidence compelling to recommend increasing the work RVUs

for office visits, subsequent hospital visits, and consultations. The

RUC made an interim recommendation not to change the work RVUs for the

home visits. In developing its

[[Page 20032]]

recommendations, the RUC focused principally on the work involved in

the evaluation and management services, how the work has changed over

time, and how the work is related to the work of other evaluation and

management services and non-evaluation and management services. The RUC

recommended work RVUs for 39 of the 98 evaluation and management

services for which we have assigned work RVUs. When there was not a

recommendation, the RUC took the position that the work RVUs did not

need to be changed.

As we evaluated the RUC recommendations, we noted several

inconsistencies:

The recommendations significantly alter the existing

relationships among all the evaluation and management services without

providing compelling evidence that the existing rank order is

incorrect.

The complexity of the service, as described by the level

of history, examination, and decision making, did not directly

correspond to the recommended work RVUs.

The survey data were flawed; however, the RUC used the

postservice work times that it acknowledges are overstated in its

formula to calculate intraservice work intensity. The formula actually

calculates something that is more accurately described as total work

intensity, that is, total work divided by total time.

Many of the arguments to increase the RVUs are based on

the assumptions that the CPT codes do not adequately describe the

service and that the current CPT codes for evaluation and management

services were not used in the Harvard surveys.

We believe that maintaining the relationships among the evaluation

and management services is important. Therefore, we have examined all

98 evaluation and management services for which we have assigned work

RVUs. In assigning work RVUs, we considered the level of complexity of

each service and valued the service as described by the CPT code. As

the American Academy of Family Physicians noted in its original 5-year

review comments, ``valuing a service which requires more effort and

more time at a lower level than a `simple' procedure is inconsistent

with the concept of a resource-based relative value scale.'' We believe

that this rationale applies within the family of evaluation and

management services. We took the survey data into general consideration

but also investigated other objective data sources such as the AMA

Socioeconomic Monitoring Survey from 1988 and 1994.

If, as the commenters have suggested, the patients are more complex

and the postservice work has increased, we should expect to see a

change in the number of patient care hours a physician works or in the

number of patient visits per week or a change in the level of visit

billed. However, data from the AMA Socioeconomic Monitoring Survey as

published in Physician Marketplace Statistics 1989 and 1994, reveal

that the median number of hours a physician works in patient care (51)

and the median number of patient visits per week (101) have not changed

between 1988 and 1994. The AMA definition of hours in patient care

includes activities that we consider to be postservice work. Using

these data along with Medicare frequency data and the total service

times provided in the RUC recommendations (RUC RVUs/RUC intensities),

we calculated that the minimum number of hours in patient care

necessary to perform 101 visits per week is 78.5. This discrepancy

suggests that the RUC recommendations overestimate the total times by

approximately 50 percent.

In reviewing our claims data, we have seen a slight increase in the

average number of work RVUs billed within each group of evaluation and

management services. For each family of evaluation and management

services, we calculated the quarterly average work RVUs since the

beginning of the physician fee schedule. The average work RVUs for the

family of office/outpatient visit for an established patient (CPT codes

99211 through 99215), have increased from 0.60 to 0.62, a 3.33 percent

increase from 1992 to 1995. This increase may reflect the increasing

complexity of the Medicare patient or other factors.

National Ambulatory Medical Care Survey data from 1989 and 1993

reveal that the mean face-to-face time for all office visits has

increased 13.6 percent. In 1989, the mean time was 16.2 minutes and in

1993 it was 18.4 minutes. Although the change is statistically

significant, we question its clinical significance. The data

demonstrate, however, that between 1989 and 1993 there has been a shift

toward office visits with longer face-to-face times.

We approached review of the work RVUs for the evaluation and

management services with three basic assumptions that were integral to

the Harvard study and the 1992 work RVU refinement:

All services within a family of evaluation and management

services (that is, office visits) have the same intraservice work

intensity.

The intraservice work times in the CPT code descriptors

are correct.

The preservice and postservice work intensity is a fixed

percentage of the intraservice work intensity.

The RUC recommendations do not preserve these basic assumptions

except for using the CPT times as an accurate measure of intraservice

work times. Despite claiming that it maintained constant intensities

within a family, the intensities the RUC calculated are not always

consistent. For example, the RUC intensities for CPT codes 99231

through 99233 range from 0.018 to 0.021. It is also unclear whether the

RUC calculated preservice and postservice work intensities. If we

assume a fixed intraservice work intensity within a family of

evaluation and management codes, the RUC recommendations actually

assign higher amounts of preservice and postservice work to the lower

level codes within an evaluation and management family.

The commenters claim that Harvard did not survey the current

evaluation and management codes is technically correct but very

misleading. In fact, the current codes were carefully developed to

support the clinical vignettes used in, and the results of, the Harvard

surveys. An extraordinary amount of work by Harvard, HCFA, the

Physician Payment Review Commission, the CPT Editorial Panel, and the

specialty societies went into the formulation and testing of the codes.

We will continue to value services based on the CPT descriptions. If

physicians believe that the definitions do not correctly describe the

service as furnished in today's health care sector, they should discuss

revising the definitions with the CPT Editorial Panel.

In assigning work RVUs to these services, we defined preservice

work as preparing to see the patient, reviewing records, and

communicating with other professionals, as appropriate. We defined

postservice work as including all coordination of care, documentation,

and telephone calls with the patient, family members, or other health

professionals associated with the delivery of care to the patient until

the next face-to-face evaluation and management service is furnished

(excluding separately billable services such as care plan oversight,

CPT code 99375). The RUC used these definitions in its survey of

evaluation and management services. Unlike the RUC and other

commenters, we consider the time and effort required for obtaining and

providing authorizations for tests and referrals to be a practice

expense

[[Page 20033]]

issue because most of the work is done by a physician's staff rather

than the physicians themselves.

We agree with the commenters that the intensities of evaluation and

management services should be increased to bring them closer to the

intensities of procedural services on the physician fee schedule.

Therefore, we propose to increase the intensities of the intraservice

work, which is that portion of total work furnished either face-to-face

with the patient in the office or on the floor or unit for inpatient

services. We also agree with the commenters that postservice work has

increased over time. We propose to increase the fixed percentage of

intraservice work that represents preservice and postservice work. To

determine the appropriate amounts to increase these intensities, we

have chosen CPT code 99291 (Critical care, first hour) as our anchor

because we believe that it is the most intense evaluation and

management service. We accepted the RUC recommendation of 4.00 work

RVUs for this service.

If we assume that CPT code 99291 is the most intense service, we do

not want the work RVUs for the other evaluation and management services

to exceed 4.00. Under the current work RVUs, we have an established

relationship between CPT code 99291 and CPT code 99213 (Level-three

established patient office visit). CPT code 99213 represents a service

with 15 minutes of face-to-face time. CPT code 99291 represents an hour

of service. We believe that four times the value for CPT code 99213

plus the work RVUs for ventilation management (1.22) and the

interpretation of a single view chest x-ray (0.18) should be about

equivalent to the work RVUs for critical care. We selected ventilation

management and interpretation of a chest x-ray because they are the

commonly performed items in critical care that are bundled into the

critical care work RVUs. Given this relationship, we used an iterative

process and determined that, for most evaluation and management

services, if we increased the intraservice work intensity by 10 percent

and the fixed percentage of intraservice work (to capture preservice

and postservice work) by 25 percent, we would increase the work RVUs

for evaluation and management services in a manner that would be

consistent with the RUC recommendations while maintaining the existing

relationships of the evaluation and management families.

We followed a straightforward methodology in revising the work

RVUs. For each code in the following classes: office, new patient;

office, established patient; initial hospital care; subsequent hospital

care; office consultation; initial inpatient consultation; and follow-

up inpatient consultation, we calculated the revised intensity by

adjusting the intensities developed in 1992 and described in our

November 25, 1992 final notice for the 1993 physician fee schedule (57

FR 55949 through 55951). Those intensities were originally based upon

results of the Harvard study and adjusted to maintain linearity in 1992

based on comments received on the 1991 physician fee schedule final

rule (56 FR 59502).

The revised intraservice work intensities that have resulted from

our 5-year review of evaluation and management services are summarized

in the following table.

------------------------------------------------------------------------

1995 intra- 1997 intra-

Code/class service service

intensity intensity

------------------------------------------------------------------------

Office visits, new patient...................... 0.028 0.031

Office visits, established patient.............. 0.028 0.031

Initial hospital visits......................... 0.028 0.031

Subsequent hospital visits...................... 0.028 0.031

Office consultations............................ 0.028 0.031

Initial inpatient consultations................. 0.022 0.024

Follow-up inpatient consultations............... 0.028 0.031

------------------------------------------------------------------------

Preservice and postservice work is expressed as a percentage of the

intraservice work. The following table summarizes the revised

preservice and postservice work as percentage of intraservice work for

the evaluation and management codes.

------------------------------------------------------------------------

1995 mean 1997 mean

Code/class percentage percentage

------------------------------------------------------------------------

Office visits, new patient...................... 35.0 43.8

Office visits, established patient.............. 35.1 43.8

Initial hospital visits......................... 30.3 37.9

Subsequent hospital visits...................... 12.5 37.9

Office consultations............................ 34.5 38.5

Initial inpatient consultations................. 34.5 37.9

Follow-up inpatient consultations............... 34.9 37.9

------------------------------------------------------------------------

To calculate the new work RVUs for the above classes of evaluation

and management services as part of the 5-year review, we used the above

intraservice work intensities and preservice and postservice work

percentages in addition to the CPT times. The intraservice work

intensity was multiplied by the typical time of the codes as listed in

CPT to determine the new intraservice work values. The preservice and

postservice work percentage of this value was added to the intraservice

work value to calculate the final work RVUs for the codes. The formula

is total work RVUs = (intraservice work intensity) x (CPT time) x

(1 + pre/post percentage of intraservice work).

Table 2, ``Evaluation and Management Codes; Five-Year Review--

Proposed Relative Value Units,'' lists all of the evaluation and

management services and their 1995 and proposed new work RVUs. For each

code, we have also provided a measure of complexity. This is a numeric

representation of the level of history, examination, and medical

decision making associated with the service. These three components of

the evaluation and management service are considered the key components

in selecting a level of evaluation and management service. For each of

the 3 elements, the maximum score is 4; therefore, the most complex

service has a score of 12. If the CPT code descriptor does not define

the typical level of history, examination, and decision making

complexity, as with CPT code 99291 (Critical care, first hour), no

score for that code may be computed.

BILLING CODE 4120-01-P

[[Page 20034]]

[GRAPHIC] [TIFF OMITTED] TN03MY96.023

[[Page 20035]]

[GRAPHIC] [TIFF OMITTED] TN03MY96.024

BILLING CODE 4210-01-C

[[Page 20036]]

CPT codes 99201 through 99215 (Office visits).

We disagree with the RUC' contention that the established patient

visits are more undervalued than the new patient visits. We also

disagree with the RUC recommendations that assign higher work RVUs to

established patient visits than new patient visits of the same duration

and same level of complexity, for example, the recommended work RVUs

for CPT codes 99201 and 99212. Both codes describe 10 minute office

visits of equal complexity. However, the RUC has recommended work RVUs

for the established patient visit that are 28 percent greater than the

recommended work RVUs for the new patient visit. Historically, there

has been a consensus in the physician community (confirmed by the

Harvard resource-based relative value study) that new patients involve

more physician work than established patients. It was for this reason

that the CPT Editorial Panel created separate codes for new and

established patients.

Finally, we do not agree that the work RVUs for CPT code 99211

(Level-one established patient office visit) should change as the RUC

has recommended. Because this service, by definition, does not require

the presence of a physician, we are maintaining the 1995 work RVUs.

We adjusted the intraservice work intensity of CPT code 99213 to

equal the intensities of the other office visit codes. Rounding due to

past budget neutrality adjustments had caused the slight variation in

the intraservice work intensities. To account for the possibility that

these services were originally undervalued, we increased the

intraservice work intensity by 10 percent. Because the package of

postservice work, as defined earlier, was not explicitly surveyed by

Harvard and we believe that the amount of postservice work has

increased since these codes were originally assigned RVUs, we increased

the preservice and postservice work percentage of intraservice work for

all office visit codes (except for CPT code 99211) by 25 percent.

Using the adjusted work intensities and the times included in the

CPT descriptors for the codes, we calculated new work RVUs for all

office visits. The new work RVUs are on average 17.1 percent greater

than the 1995 work RVUs for CPT codes 99201 through 99215.

CPT codes 99221 through 99239 (Hospital visits).

The RUC assumed that there has been no change in initial hospital

visits (CPT codes 99221 through 99223) since the original Harvard

study. In fact, the RUC did not survey these services to determine

whether its assumption was true. Neither did the RUC suggest that these

codes were originally undervalued like other evaluation and management

services. The RUC recommended no change in the work RVUs for these

codes despite the comments that all evaluation and management services

were undervalued relative to procedural services. Our view is that if

the office visits were undervalued, so were the initial hospital

visits. We approached review of these codes in the same manner as we

did the office visit codes.

The RUC recommended that the work RVUs for subsequent hospital

visits and follow-up inpatient consultations should be equivalent

because the time and complexity of the lowest, middle, and highest

levels of subsequent hospital care and follow-up inpatient

consultations are very similar. We agree that they are similar;

however, they are not identical. Therefore, we have reviewed each group

of services on its own merit.

Because the RUC recommended no change in the work RVUs for initial

hospital visits and significant increases in the work RVUs for

subsequent hospital visits, the rank order of these two groups of

evaluation and management services is distorted. We do not agree, as

the RUC recommended, that subsequent hospital visits typically require

more work than initial hospital visits. The work RVUs recommended for

CPT code 99232 (Level-two subsequent hospital visit with a typical time

of 25 minutes and a complexity score of 7.0) are 23 percent greater

than the recommended work RVUs for CPT code 99221 (Level-one initial

hospital visit with a typical time of 30 minutes and a complexity score

of 8.5). If we chose to accept the RUC, we would be allowing a shorter,

less complex service to be valued higher than a longer, more complex

service. This assignment of work RVUs corrupts the integrity of a

resource-based relative value system.

We reestablished a fixed intraservice work intensity for initial

hospital visits at 0.028. (There was minimal variation across the three

levels due to the past budget neutrality adjustments.) This intensity

is the same as the intensity for subsequent hospital visits (CPT codes

99231 through 99233). As with the office visits, we increased the

intraservice work intensity by 10 percent for both initial and

subsequent hospital visits to account for an original undervaluing of

the services.

Following the change in the intraservice work intensities, we

increased the preservice and postservice work percentage of

intraservice work for the subsequent hospital visits to equal that of

inpatient consultations. We then increased this percentage for all

initial and subsequent hospital visit codes by 25 percent. Using the

adjusted work intensities and the times included in the CPT descriptors

for the codes, we calculated new work RVUs for all initial and

subsequent hospital visits. The new work RVUs are on average 20 percent

greater than the 1995 work RVUs for CPT codes 99221 through 99233.

After making these adjustments to the initial hospital visit codes,

we equated CPT code 99238 (Hospital discharge day management, 30

minutes or less) to CPT code 99221 (Level-one initial hospital visit)

when assigning new work RVUs. The 1995 work RVUs for CPT codes 99238

and 99221 are equal. We have decided to maintain this relationship

because there is no evidence to suggest that altering it is

appropriate. We did not change the work RVUs for CPT code 99239

(Hospital discharge day management, more than 30 minutes) because the

code was new in calendar year 1996. Therefore, there has been no change

over time in the service described by this code. Not revising the work

RVUs for CPT code 99239 also places it just below CPT code 99222, a

similar service of slightly greater duration.

CPT codes 99217 through 99220 (Observation care services).

The RUC did not make any recommendations regarding observation care

services. As part of our effort to examine the whole group of

evaluation and management services to maintain existing relationships,

we reviewed these codes.

In reviewing the work RVUs for CPT code 99217 (Observation care

discharge), we noted that this code is relatively equivalent to CPT

code 99238 (Hospital discharge day management). To reflect this

relationship, we assigned work RVUs to this code equal to the work RVUs

assigned to CPT code 99221, a 17.3 percent increase in work RVUs.

The initial observation care services for new or established

patients (CPT codes 99218 through 99220) match the services described

by the initial hospital visits codes in the level of complexity.

Because both sets of codes can only be billed once per date of service

and patients in observation status are virtually identical to

inpatients, we have made the work RVUs for CPT codes 99218 through

99220 equivalent to the work RVUs assigned to CPT codes 99221 through

99223, thereby increasing the work RVUs by an average of 21.6 percent.

CPT codes 99241 through 99275 (Consultations).

[[Page 20037]]

The RUC concluded that the work RVUs for office consultations and

inpatient consultations should be ``equivalent at all levels of service

except the highest. This preserves the same relationship that exists in

the current RVUs for these services.'' We disagree with the RUC that

inpatient and office consultations should be equally valued. The 1995

work RVUs for these two families are not equivalent. The Harvard data

demonstrated that inpatient consultations are more total work than

office consultations, except at the lowest level of service. We believe

that these services are not equivalent because the intraservice times

are different and the associated postservice work is different (it is

greater for inpatient consultations). However, we acknowledge that the

level of complexity of the five levels of services for both inpatient

and office consultations are the same.

CPT codes 99241 through 99245 (Office or other outpatient

consultations).

The work associated with office consultations is more comparable to

the work of office visits than to inpatient consultations. Therefore,

we standardized the intraservice work intensities to make them

equivalent to the 1995 intraservice work intensities of office and

hospital visits (0.028). We also adjusted the preservice and

postservice work percentage of intraservice work to equal the 1995

percentage for office visits, a slight increase from 34.5 percent to 35

percent.

After these initial adjustments were made, we increased the

intraservice work intensities by 10 percent to reflect our belief that

the codes may have been originally undervalued. To account for the

previously defined package of postservice work, we increased the

preservice and postservice work percentage of intraservice work by 10

percent. We did not increase the postservice work percentage by 25

percent as we did with the office visits because we do not believe that

the postservice work associated with an office consultation is as great

as for an office visit. The postservice work for an office visit

includes the ongoing management of the patient until the next face-to-

face visit. The postservice work for a consultation involves writing a

report for the referring physician without the expectation, in the

typical case, that the patient will return to the consulting physician,

nor is the consulting physician responsible for any ongoing management

of the patient. If the consultation results in a decision to perform

surgery, any postservice management of the patient is included in the

global surgical package.

CPT codes 99251 through 99255 (Initial inpatient consultations).

We standardized the intraservice work intensities to eliminate the

minor variation that resulted from the annual budget neutrality

adjustments to the RVUs. Based on the Harvard study, the intraservice

work intensity is less than that of the office consultations.

As we did with hospital visits, we increased the intraservice work

intensities by 10 percent and the preservice and postservice work

percentage of intraservice work by 25 percent. These increases reflect

the belief that the services were initially undervalued and that the

postservice work, now clearly defined, is greater due to changes over

time. Postservice work associated with an inpatient consultation is

greater than that for an office consultation because of the amount of

work performed off-the-floor by the consulting physician, such as

checking on laboratory results and reviewing x-rays. The new work RVUs

are, on average, 17.5 percent greater than the 1995 work RVUs assigned

to initial inpatient consultations.

CPT codes 99261 through 99263 (Follow-up inpatient consultations).

We disagree with the RUC that these codes should have the same work

RVUs as their corresponding level of the subsequent hospital visit

codes because the intraservice times are different and consultations

and visits are not equivalent services. We agree that the intraservice

work intensities and the preservice and postservice work percentages of

intraservice work are probably the same for follow-up consultations and

subsequent hospital visits. Therefore, we adjusted the preservice and

postservice work percentage of intraservice work to match the 1995

percentage of the subsequent hospital visits, a decrease from 34.5

percent to 30.3 percent.

Using the same rationale as for the initial inpatient

consultations, we increased the intraservice work intensities by 10

percent and the preservice and postservice work percentages of

intraservice work by 25 percent. The new work RVUs for these services

are about 14 percent higher than the 1995 work RVUs assigned to these

codes.

CPT codes 99271 through 99275 (Confirmatory consultations).

We have decided not to change the work RVUs assigned to these

codes. There is less work associated with a confirmatory consultation

than a new patient office visit because the patient arrives with a

preliminary diagnosis and the consulting physician is expected to

provide an opinion or advice only. Not adjusting the work RVUs alters

the existing relationships that these codes have with the rest of the

evaluation and management services, but we believe that this change is

appropriate.

CPT codes 99281 through 99285 (Emergency department services).

We disagree with the RUC's recommendation to maintain the 1995 work

RVUs for emergency department services. The RUC did not consider the

emergency room physicians' survey of CPT codes 99284 and 99285 adequate

to support change. In our view, this survey was no less adequate than

some surveys on which the RUC based its recommendations to increase the

work RVUs of other evaluation and management codes. For consistency and

equity, if other visit codes are being reviewed because of a belief

that evaluation and management services were originally undervalued,

emergency department services should also be reviewed.

Given that we have assigned increased work RVUs to other evaluation

and management services with complexities comparable to those of the

emergency room services, we believe that we should make comparable

changes to CPT codes 99281 through 99285. We do not have work

intensities or CPT times for these codes, thus, we have assigned work

RVUs to these services that maintain their proportional relationship

with the work RVUs assigned to CPT code 99255, the non-critical care

evaluation and management code with the highest work RVUs. The

resulting work RVUs reflect an average 16.6 percent increase from the

1995 work RVUs for emergency department services.

CPT codes 99291 through 99297 (Critical care services).

We have accepted the RUC recommendations for CPT codes 99291 and

99292. Because the work RVUs for CPT codes 99293 through 99297 are

based on the work RVUs of CPT codes 99291 and 99292, we have adjusted

the work RVUs for these neonatal intensive care services. Using the

formula articulated in the December 2, 1993 final rule for the 1994

physician fee schedule (58 FR 63675), CPT code 99295 is equivalent to 4

hours of critical care, CPT code 99296 is equivalent to 2 hours of

critical care, and CPT code 99297 is equivalent to 1 hour of critical

care. Therefore, the new work RVUs for CPT code 99295 (16.00) are

calculated as follows: the work RVUs of CPT code 99291 (4.00) plus six

times CPT code 99292 (6 x 2.00). The new work RVUs for CPT code 99296

(8.00) equal the work

[[Page 20038]]

RVUs of CPT code 99291 (4.00) plus two times CPT code 99292 (2 x 2.00).

The new work RVUs for CPT code 99297 (4.00) equal the work RVUs of CPT

code 99291 (4.00).

CPT codes 99301 through 99313 (Nursing facility services).

In 1992, these codes were evaluated by a multispecialty refinement

panel after commenters had requested that we assign work RVUs for

nursing facility services that were more commensurate with the work

RVUs assigned to the hospital visit codes. The commenters believed that

nursing facility visits were most similar to hospital visits in time,

intensity, and complexity. In general, the refinement panel agreed with

the commenters. Therefore, we need to revise the work RVUs assigned to

CPT codes 99301 through 99313 because we have revised the work RVUs for

the initial and subsequent hospital visits. In order to maintain the

relationship that the refinement panel created, we are assigning new

work RVUs to the nursing facility services using the CPT times and the

revised intensities for initial and subsequent hospital visits

(intraservice intensity = 0.031 and the pre/post fixed percentage of

intraservice work = 37.9 percent). Because the 1995 work RVUs resulted

from a refinement panel, they do not consistently represent the above

relationship. The proposed work RVUs use the intensities for initial

and subsequent hospital visits for all the nursing facility codes. As a

result, some of the proposed work RVUs are lower than the current work

RVUs.

CPT codes 99341 through 99353 (Home services).

Our view is that the current relationship between the work RVUs for

home visits and office visits should be maintained. The May 1992

refinement panel equated the home codes to office visit codes. Our

position is that a home visit takes longer to furnish than a service

with a similar content (level of history, examination, and medical

decision making) in an office setting, thus, the home visits are

equated with office visits of greater length. Therefore, we assigned

new work RVUs to the home visit codes using the following relationships

with the new work RVUs for office visits:

New patients:

CPT code 99341=CPT code 99203;

CPT code 99342=CPT code 99204;

CPT code 99343=CPT code 99205.

Established patients:

CPT code 99351=CPT code 99213;

CPT code 99352=CPT code 99214;

CPT code 99353=CPT code 99215.

Because the 1995 work RVUs resulted from a refinement panel, the above

relationships are not perfectly represented by the 1995 work RVUs.

Therefore, in assigning new work RVUs with the above-described

relationship, we have decreased the work RVUs for CPT codes 99351 and

99352.

CPT codes 99321 through 99333 (Domiciliary, rest home (e.g.,

boarding home), or custodial care services).

The source of the 1995 work RVUs is HCFA. We assumed that these

services require less work than home visits because of the availability

of personal assistant services. We have taken the average of the

relative proportion of the 1995 work RVUs for these codes to the 1995

work RVUs of the home visit codes; on that basis, the domiciliary codes

represent two-thirds of the work of the home visits. We are maintaining

the existing relationship in the fee schedule. We calculated the new

work RVUs for CPT codes 99321 through 99333 by multiplying the work

RVUs for CPT codes 99341 through 99353 by 0.667. Specifically, the

relationship between the two families is the following:

CPT code 99321=(0.667) CPT code 99341

CPT code 99322=(0.667) CPT code 99342

CPT code 99323=(0.667) CPT code 99343

CPT code 99331=(0.667) CPT code 99351

CPT code 99332=(0.667) CPT code 99352

CPT code 99333=(0.667) CPT code 99353

CPT codes 99354 through 99357 (Prolonged physician service with

direct (face-to-face) patient contact).

We did not receive any RUC recommendations for these services.

However, the 1995 work RVUs for these codes are based on the work RVUs

of three other evaluation and management codes. This relationship was

established in the December 8, 1994 final rule for the 1995 physician

fee schedule (59 FR 63437 through 63440). To maintain this

relationship, we have recalculated the work RVUs for CPT codes 99354

through 99357 using the new work RVUs for CPT codes 99215, 99221, and

99222. The work RVUs for CPT codes 99354 and 99355 are equal to the

work RVUs assigned to CPT code 99215. The work RVUs for CPT codes 99356

and 99357 are equal to the average of the work RVUs of CPT codes 99221

and 99222.

We understand that some physicians do not associate the use of

prolonged service codes with potential increases in postservice work.

Because the work RVUs for these prolonged service codes are based on

other evaluation and management services, the use of a prolonged

service code increases the potential amount of postservice work

associated with the service being furnished to the Medicare

beneficiary. The prolonged service codes describe additional face-to-

face time but CPT codes 99215, 99221, and 99222 include postservice

time. By establishing a clear relationship among these codes, a

prolonged face-to-face service may very well have increased postservice

work. We believe that the use of these codes adequately describes the

total service.

CPT code 99375 (Care plan oversight).

Because the current 1.73 work RVUs resulted from a 1995 refinement

panel, we do not see any need to adjust the work RVUs further.

CPT codes 99381 through 99412 (Preventive medicine services).

The work RVUs assigned to these codes were added to the Medicare

physician fee schedule in 1995. Because these codes were recently

valued, we do not believe that we need to review the work RVUs for

them. The intraservice work intensities and the preservice and

postservice work have not changed since 1994 when the work RVUs were

assigned. Because we are not adjusting the work RVUs, we are changing

the rank order of the evaluation and management services. We believe

that the new rank order better reflects the relative complexities of

the office visits for a sick patient and for a healthy patient. For

example, a preventive medicine visit for a 65-year old patient (CPT

code 99397) has work RVUs assigned to it that are between a level-four

and level-five office visit for an established, sick patient (CPT codes

99214 and 99215). In fact, the work RVUs are only 3 percent less than

the new RVUs assigned to CPT code 99215.

CPT codes 99431 through 99440 (Newborn care).

The work RVUs for these services resulted from a multispecialty

refinement panel convened in the summer of 1994. The work RVUs for CPT

code 99435 were assigned last summer. We do not believe that we need to

revise these codes since the work RVUs were recently assigned.

Ophthalmology Codes

We referred comments to the RUC requesting review of the

ophthalmology codes for eye visits. The comments compared the work RVUs

for these codes to the work RVUs for office visits.

The RUC agreed that a permanent link should be established between

the ophthalmological eye examination codes and evaluation and

management services. The RUC recommended that

[[Page 20039]]

the following relationship be established for assigning work RVUs to

the ophthalmological codes:

CPT code 92002 (Ophthalmological services: medical

examination and evaluation with initiation of diagnostic and treatment

program; intermediate, new patient) should have the same work RVUs as

CPT code 99202 (Level-two office/outpatient visit, new patient).

CPT code 92004 (Ophthalmological services: medical

examination and evaluation, with initiation of diagnostic and treatment

program; comprehensive, new patient, one or more visits) should have

the same work RVUs as CPT code 99203 (Level-three office/outpatient

visit, new patient).

CPT code 92012 (Ophthalmological services: medical

examination and evaluation with initiation of diagnostic and treatment

program; intermediate, established patient) should have the same work

RVUs as CPT code 99213 (Level-three office/outpatient visit,

established patient).

CPT code 92014 (Ophthalmological services: medical

examination and evaluation with initiation of diagnostic and treatment

program; comprehensive, established patient, one or more visits) should

have the same work RVUs as CPT code 99214 (Level-four office/outpatient

visit, established patient).

We agree with the relationships in the RUC recommendation. However,

because the work RVUs that we assigned to CPT codes 99202, 99203,

99213, and 99214 are different from the RUC-recommended work RVUs for

these codes, the work RVUs that we have assigned to the

ophthalmological codes are different from the RUC recommendation. We

have assigned the following work RVUs:

------------------------------------------------------------------------

1995 New

CPT code work work

RVUs RVUs

----------------------

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