Updating the Geographic Practice Cost Index: Revised Cost Shares. (Revised May 1994)

摘要

The Geographic Practice Cost Index (GPCI) is used in adjusting Medicare Fee Schedule payments for regional variations in physicians' cost of practice. The practice expense shares, which include physician net income as the 'cost' of physician time, are often referred to simply as 'cost shares.' GPCI index values for each area are calculated by weighting the relative price terms by the national cost shares to form an average relative price for practice inputs in each area. This report reviews the construction of the GPCI cost share. Section I of the report provides background/overview information, Section II evaluates cost share data sources, and Section III describes Medicare Economic Index (MEI) cost shares. Appendix A provides sensitivity analyses of cost shares to the method of calculation and the sample used. Appendix B provides alternatives for cost share updating, i.e., the timing between updates.