Updating the Geographic Practice Cost Index. Final Report

摘要

The Geographic Practice Cost Index (GPCI) is an input price index used to adjustMedicare Fee Schedule (MFS) payments for area variations in physicians' cost of practice. The GPCI has undergone a major benchmark revision using data from the 1990 Census and other data, effective January 1, 1995 and 1996. The purpose of updating is to maintain a GPCI that accurately measures differences in physicians' cost of practice across areas. The optimal frequency of updating depends upon the volatility of the input price measured. This report addresses periodic updates of the GPCI between major benchmark revisions based on the Decennial Census, which can be accomplished only every 10 years. It considers updating each of the four input price indices utilized in the GPCI--(1) professional earning (work GPCI), (2) employee wages (nonphysician employee wage index), (3) HUD Fair Market Rents (rental index), and (4) malpractice insurance premiums (malpractice index).