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Health Care Financ R · Jan 1993
Comparative StudyAllocating practice expense under the Medicare fee schedule.
- G C Pope and R T Burge.
- Center for Health Economics Research, Waltham, MA.
- Health Care Financ R. 1993 Jan 1; 14 (3): 139-62.
AbstractCurrently, 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.
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