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Appendix I: Physician Work Adjustment
Pages 195-198

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From page 195...
... Federal wage rates for a variety of occupations ranging from census workers to highly skilled professionals and managers also vary geographically. Indeed, geographic variation in wages for nonphysician health care workers is reflected in the geographic adjustment of hospital and physician office labor expenses.
From page 196...
... . Because almost all physicians work in the health care industry, expanding the data source for physician earnings beyond the health care industry would not solve the circularity problem inherent in using physician wages for the work GPCI.
From page 197...
... and also how well the reference population compensation predicts physician compensation, summarized by the correlation coefficient between the predictions and the raw physician index. Even with the best available choice of reference occupations, a low correlation such as 0.25, which is the same level as the adjustment currently used, would be an indication that the factors determining physician wages are too distinctive to be adequately captured by this methodology; in that case, a direct comparison of physician salary data from a variety of sources, such as MGMA or American College of Surgeons (ACS)
From page 198...
... 2011. Testimony to the IOM Committee on Geographic Adjustment Factors in Medicare Pay ment on behalf of the American Academy of Family Physicians.


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