Practice expenses for services provided in a physician’s office include:
1. Clinical Staff Time
2. The Equipment
3. Supplies Typically Used During A Procedure
4. Indirect Expenses Of A Physician Practice Such As Administrative Staff
5. Building Space
6. Office Supplies
Considered overhead or “facility fees” whether NON-FAC PE is $6 or $600 the costs would be allocated across the categories above. If a very specific supply was used every time that would be a straightforward calculation. If specific equipment was used than a portion of the equipment’s cost would need to be allocated. If nursing staff is required that would be included. Also the time required for the procedure would impact the overhead. The office space itself would be the most difficult (and ambiguous). It would be a function of the cost of office space and how many procedures were performed–a very difficult calculation. For the most part these functions are assigned to experts at the AMA, Medicare and each professional association who specialize in RVU’s.