---
kind: "section"
citation: "42 C.F.R. § 414.34"
title: "42"
number: "414.34"
heading: "Payment for services and supplies incident to a physician's service."
url: "https://uscodex.org/cfr/42/414.34"
---

# §414.34. Payment for services and supplies incident to a physician's service.

- (a) **Medical supplies.**
  - (1) Except as otherwise specified in this paragraph, office medical supplies are considered to be part of a physician's practice expense, and payment for them is included in the practice expense portion of the payment to the physician for the medical or surgical service to which they are incidental.
  - (2) If physician services of the type routinely furnished in provider settings are furnished in a physician's office, separate payment may be made for certain supplies furnished incident to that physician service if the following requirements are met:
    - (i) **It is a procedure that can safely be furnished in the office setting in appropriate circumstances.**
    - (ii) It requires specialized supplies that are not routinely available in physicians' offices and that are generally disposable.
    - (iii) **It is furnished before January 1, 1999.**
  - (3) For the purpose of [paragraph (a)(2)](#a-2) of this section, provider settings include only the following settings:
    - (i) **Hospital inpatient and outpatient departments.**
    - (ii) **Ambulatory surgical centers.**
  - (4) For the purpose of [paragraph (a)(2)](#a-2) of this section, “routinely furnished in provider settings” means furnished in inpatient or outpatient hospital settings or ambulatory surgical centers more than 50 percent of the time.
  - (5) CMS establishes a list of services for which a separate supply payment may be made under this section.
  - (6) **The fee schedule amount for supplies billed separately is not subject to a GPCI adjustment.**
- (b) **Services of nonphysicians that are incident to a physician's service.** Services of nonphysicians that are covered as incident to a physician's service are paid as if the physician had personally furnished the service.

## Notes

### Amendments

[56 FR 59624, Nov. 25, 1991; 57 FR 42492, Sept. 15, 1992, as amended at 63 FR 58911, Nov. 2, 1998]

### Source

Source: 56 FR 59624, Nov. 25, 1991; 57 FR 42492, Sept. 15, 1992, unless otherwise noted.

### Authority

Authority: 42 U.S.C. 1302, 1395hh, and 1395rr(b)(l).

### Source

Source: 55 FR 23441, June 8, 1990, unless otherwise noted.

### Amendments

[56 FR 59624, Nov. 25, 1991; 57 FR 42492, Sept. 15, 1992, as amended at 63 FR 58911, Nov. 2, 1998]