Allocating practice expense under the Medicare fee schedule.
Pope, Gregory C
Date of Pub
Burge, Russel T
Currently, relative value units for practice expense are determined under the Medicare fee schedule (MFS) using historical
physician charges. This seems inconsistent with the goal of a resource-based fee schedule. A specialty resource-based method
of determining practice expense payments is presented and simulated here. The method assumes that, for each service, the payment
for practice expense should be the same proportion of the total payment as actual physician practice expenses are of total
practice revenues. A comparison with the approach developed by the Physician Payment Review Commission (PPRC) shows similar
fees, but the specialty-based method proposed here requires no data beyond what is already employed in the MFS.
Relative Value Scales : Comparative Study : Computer Simulation : Cost Allocation/methods : Fee Schedules/economics : Fees,
Medical/statistics & numerical data : Income/statistics & numerical data : Medicare Part B/economics : Physician Payment Review
Commission : Physicians/economics : Practice Management, Medical/economics : Specialties, Medical/economics/statistics & numerical
data : United States