Our radiology department is in violation of the antitrust statutes by developing a fee schedule using College of American Radiology relative value units (RVUs). You must establish a new RVU system before we can set FY 2021 rates. The radiology manager has already completed some of the work and Ill send it over to you [see Table IV at the end of this case study]. Please develop a hospital-specific RVU schedule and assign 2021 radiology depart- ment rates. (Total radiology expenses for 2021, including hospital indirect costs, which must be covered by the department, are projected to be $20 million.)

Bed... bart e Tech Minutes Supply Expense 2020 Volumes 2020 Rate 20 250 500 120 40 14 28 5 5 10 10 240 20 20,000 20,000 7,000 4,000 1,000 6,000 4,000 120 5 10 240 10 20 700 30 60 Procedure (% charge-based) Radiology Chest 2-view (25%) Chest 4-view (25%) Hand (25%) Arm (25%) Foot (25%) Leg (25%) Fluoroscopy (50%) Ultrasound Abdomen (75%) Other (75%) Nuclear Medicine Scan (50%) Computed Tomography (CT) Head without contrast (75%) Head with contrast (75%) Body without contrast (50%) Body with contrast (50%) 280 15 20 5,000 5,622 250 10 20 820 60 60 2,000 1,100 30 100 200 60 1,500 1,400 1,800 150 150 30 60 300 400 500 200 TABLE V-A CMMC Salary Expense, Average Hourly Rates, December 2020 Bed... bart e Tech Minutes Supply Expense 2020 Volumes 2020 Rate 20 250 500 120 40 14 28 5 5 10 10 240 20 20,000 20,000 7,000 4,000 1,000 6,000 4,000 120 5 10 240 10 20 700 30 60 Procedure (% charge-based) Radiology Chest 2-view (25%) Chest 4-view (25%) Hand (25%) Arm (25%) Foot (25%) Leg (25%) Fluoroscopy (50%) Ultrasound Abdomen (75%) Other (75%) Nuclear Medicine Scan (50%) Computed Tomography (CT) Head without contrast (75%) Head with contrast (75%) Body without contrast (50%) Body with contrast (50%) 280 15 20 5,000 5,622 250 10 20 820 60 60 2,000 1,100 30 100 200 60 1,500 1,400 1,800 150 150 30 60 300 400 500 200 TABLE V-A CMMC Salary Expense, Average Hourly Rates, December 2020