Page:United States Statutes at Large Volume 103 Part 3.djvu/105

 PUBLIC LAW 101-239—DEC. 19, 1989 103 STAT. 2173 "(iii) MALPRACTICE RELATIVE VALUE UNITS.— The Sec- retary shall determme a number of malpractice rel- ative value units equal to the product of— "(I) the base allowed charges (as defined in subparagraph (D)) for the service, and "(11) the malpractice percentage for the service (as determined under paragraph (SXCXiii))- "(D) BASE ALLOWED CHARGES DEFINED. — In this paragraph, the term 'base allowed charges' means, with respect to a physician's service, the national avergige cdlowed charges for the service under this part for services furnished during 1991, as estimated by the Secretary using the most recent data available. "(3) COMPONENT PERCENTAGES. — For purposes of paragraph (2), the Secretary shall determine a work percentage, a practice expense percentage, and a malpractice percentage for each physician s service as follows: "(A) DIVISION OF SERVICES BY SPECIALTY. —For each physi- cian's service or class of physicians' services, the Secretary shall determine the average percentage of each such service or class of services that is performed, nationwide, under this part by physicians in each of the different physician specialties (as identified by the Secretary). "(B) DIVISION OF SPECIALTY BY COMPONENT. —The Sec- retary shall determine the average percentage division of resources, among the work component, the practice expense component, and the malpractice component, used by physi- cians in each of such specialties in furnishing physicians' services. Such percentages shall be based on national data that describe the elements of physician practice costs and revenues, by physician specialty. The Secretary may use extrapolation and other techniques to determine practice costs and revenues for specialties for which adequate data are not available. "(C) DETERMINATION OF COMPONENT PERCENTAGES. — "(i) WORK PERCENTAGE. —The work percentage for a service (or class of services) is equal to the sum (for all physician specialties) of— "(I) the average percentage division for the work component for each physician specialty (deter- mined under subparagraph (B)), multiplied by "(II) the proportion (determined under subpara- graph (A)) of such service (or services) performed by physicians in that specialty, " (ii) PRACTICE EXPENSE PERCENTAGE. — The practice i expense percentage for a service (or class of services) is equal to the sum (for all physician specialties) of— "(I) the average percentage division for the prac- tice expense component for each physician spe- cialty (determined under subparagraph (B)), multi- plied by "(II) by the proportion (determined under subparagraph (A)) of such service (or services) per- formed by physicians in that specialty, " (iii) MALPRACTICE PERCENTAGE. —The malpractice percentage for a service (or class of services) is equal to the sum (for all physician specialties) of—

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