Payment by Physician Group on Fee-For-Service Basis

30.2- Payment by Physician Group on Fee-For-Service Basis (Rev. 30, 09-05-03) If the HCPP pays a physician group on other than a fee-for-service basis, and that physician group pays its physicians on a fee-for-service basis, reasonable costs shall not exceed reasonable charges as defined at 42 CFR 405 Subpart E. Subpart E limitations do not apply if the physician group has effective incentives (as defined in 42 CFR 417.802 (b)(ii)(B)) to avoid unnecessary or unduly costly utilization.