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Geographic Value Index Won't Fix Healthcare Cost Variation
HealthLeaders Media Mar. 25, 2013
"CMS asked the 20-person [Institute of Medicine] committee to recommend how Medicare Parts A, B, and C payments should include a geographic value index depending on spending and value in those regions. 'These preliminary observations suggest that a geographic value index would reward low-value providers in high-value regions and punish high-value providers in low-value regions,' the committee said. The issue is a critical one, because according to one report ... 'Medicare spending would drop by as much as 29% if practices of low-cost, high-quality regions were adopted nationwide, significantly improving healthcare for Medicare beneficiaries.'"
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