tci Part B Insider - 2003 Issue 6

PHYSICIAN PAYMENTS: Can Anything Save Physician Payments?

Now it's clearer than ever that physicians will suffer negative updates for the next few years at least, and the chorus of voices calling for a reform to the payment formula is increasing. Unlike other providers, whose payments rise every year according to the Consumer Price Index, barring Congressional action, physicians' payments depend on a more complex calculation. The Centers for Medicare & Medicaid Services must look at whether physician spending hit the previous year's targets, and factor in growth in the Gross Domestic Product. Only a dramatic recovery in GDP growth or a steep drop in the volume...

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