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Related Experiment Videos

Relative cost differences among physicians' specialty practices.

E R Becker1, D Dunn, W C Hsiao

  • 1Department of Health Policy and Management, Harvard University School of Public Health, Boston, MA 02115.

JAMA
|October 28, 1988
PubMed
Summary
This summary is machine-generated.

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The practice cost index adjusts the Resource-Based Relative Value Scale (RBRVS) for variations in medical practice costs. Most specialties show a 15% difference in practice costs relative to gross revenue.

Area of Science:

  • Health Economics
  • Medical Practice Management
  • Healthcare Policy

Background:

  • Practice costs, excluding physician time, are a significant component of healthcare service delivery.
  • Understanding and quantifying these costs is crucial for accurate healthcare resource allocation.
  • The Resource-Based Relative Value Scale (RBRVS) aims to reflect the resources required for medical services.

Purpose of the Study:

  • To describe the development of the practice cost index (PCI).
  • To integrate specialty-specific practice costs into the RBRVS.
  • To account for variations in practice expenses across different medical specialties.

Main Methods:

  • Derived PCI values for each medical specialty using practice cost and gross revenue data.

Related Experiment Videos

  • Standardized PCI values relative to general surgery.
  • Utilized 1983 Physician Practice Cost and Income Survey data, adjusted for 1986 professional liability insurance costs.

    • Main Results:

    • The RBRVS was adjusted to incorporate practice cost variations.
    • Most specialties exhibited a 15% range in practice costs as a percentage of gross revenue.
    • Pathology, psychiatry, rheumatology, and orthopedic surgery showed practice costs outside this typical range.

    Conclusions:

    • The developed PCI effectively integrates practice cost variations into the RBRVS.
    • Significant variations in practice costs exist among medical specialties.
    • Further research is needed to address data limitations and conceptual issues in applying practice costs to RBRVS construction.