IOM report: Medicare geographic payment system has flaws

03/25/2013 | Medscape (free registration)

An Institute of Medicine report listed reasons why it is not a good idea to adjust Medicare payments to hospitals, physicians and other health care professionals based on geographic region. The report, requested by lawmakers from geographic areas where Medicare spending is lower, said such a policy would "likely mischaracterize the actual value of services" and lead to an unfair payment system for physicians and hospitals that made good medical decisions but were located in areas of heavy spending.

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