(a) Definition. As used in this section, facility settings include the following facilities:
(1) Hospital outpatient departments, including clinics and emergency rooms.
(2) Hospital inpatient departments.
(3) Comprehensive outpatient rehabilitation facilities.
(4) Comprehensive inpatient rehabilitation facilities.
(5) Inpatient psychiatric facilities.
(6) Skilled nursing facilities.
(b) General rule. If physicians' services of the type routinely furnished in physicians' offices are furnished in facility settings before January 1, 1999, the physician fee schedule amount for those services is determined by reducing the practice expense RVUs for the services by 50 percent. For services furnished on or after January 1, 1999, the practice expense RVUs are determined in accordance with Sec. 414.22(b)(5).
(c) Services covered by the reduction. CMS establishes a list of services routinely furnished in physicians' offices nationally. Services furnished at least 50 percent of the time in physicians' offices are subject to this reduction.
(d) Services excluded from the reduction. The reduction established under this section does not apply to the following:
(1) Rural health clinic services.
(2) Surgical services not on the ambulatory surgical center covered list of procedures published under Sec. 416.65(c) of this chapter when furnished in an ambulatory surgical center.
(3) Anesthesiology services and diagnostic and therapeutic radiology services. [58 FR 63687, Dec. 2, 1993, as amended at 60 FR 63177, Dec. 8, 1995; 62 FR 59102, Oct. 31, 1997; 63 FR 58911, Nov. 2, 1998; 64 FR 25457, May 12, 1999]