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Geographic Adjustment of Medicare Payments to Physicians: Evaluation of IOM Recommendations

Concurrent with our CY 2012 rulemaking cycle, the Institute of Medicine released the final version of its report entitled “Geographic Adjustment in Medicare Payment: Phase I: Improving Accuracy, Second Edition” on September 28, 2011. This report included an evaluation of the accuracy of geographic adjustment factors for the hospital wage index and the GPCIs, as well as the methodology and data used to calculate them. Several of the policies that we finalized in CY 2012 rulemaking addressed many of the recommendations contained in the Institute of Medicine's report. Because we did not have adequate time to completely address the Institute of Medicine's Phase I report recommendations during CY 2012 rulemaking, in our CY 2013 proposed rule we included a discussion of the remaining Phase 1 report recommendations (77 FR 44756).  We indicated in that discussion that we would make our contractor’s technical analyses of the Institute of Medicine locality recommendations, specific to the Phase I report, available on our web site. This analysis entitled "Geographic Adjustment of Medicare Payments to Physicians: Evaluation of IOM Recommendations," which was produced by Acumen, LLC under contract to CMS, may be found in the “Downloads” section below.”