Medicare Physician Payment: Practice Expense


Examines the physician practice expense component of Medicare payment, which proportionately results in greater geographic physician payment variation than does the physician work payment. The practice expense adjustment methodology warrants careful validation to demonstrate that the index measures actual geographic practice cost differences. A complete understanding of the reasons for different payments will inform both physicians who want to know why the same procedure results in less reimbursement in one place than it does in another and policymakers who want to address that concern.

RUPRI Center for Rural Health Policy Analysis
A. Clinton MacKinney, Timothy McBride, Michael Shambaugh-Miller, Keith Mueller