Institute of Medicine to Address Medicare Payment

The Institute of Medicine (IOM) has several recommendations for Congress and the U.S. Department of Health and Human Services regarding how to improve Medicare’s geographic adjustments in provider payments. One such key recommendation is related to the physician Graphic Price Cost Index (GPCI). Specifically, IOM states that “the GPCIs should use the full range of occupations employed in physicians’ offices, each a fixed national weight based on the hours of each occupation employed in physicians’ offices nationwide”. By doing so, the GPCIs will more accurately reflect the diverse workforce, including both geographic variation in occupations and differing staffing patterns.


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