IOM report: Medicare geographic payment system has flaws

03/25/2013 | Medscape (free registration)

An Institute of Medicine report lists reasons it is not a good idea to adjust Medicare payments to physicians, other health care professionals and hospitals based on geographic region. The report, requested by lawmakers from geographic areas where Medicare spending is lower, says 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 are located in areas of heavy spending.

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