How does Medicare adjust payments to physician practices to account for regional differences in input costs such as employee wages, office rent, malpractice insurance and other expenses? I recently co-authored a report in support of the CMS final rule which explains how CMS will make these adjustments for 2012. Among the key revisions are an expansion of the number of occupations included in the employee wage index and the creation of a purchased services index which takes into account regional variation in the price of services that physicians frequently contract (e.g., accounting and legal services).
You can read the full report here.
- Thomas MaCurdy, Jason Shafrin, Mallory Bounds and David Pham. “Revisions to the Sixth Update of the Geographic Practice Cost Index: Final Draft” October 2011