Geographic pricing cost index

Geographic Practice Cost Index is used along with Relative Value Units by Medicare to determine allowable payment amounts for medical procedures. There are multiple GPCIs: Cost of Living, Malpractice, and Practice Cost/Expense. These categories allow Medicare to adjust reimbursement rates to take into account regional and practice-specific factors.^{[1] [2]}

An example calculation for a Medicare allowed amount is:

2009 Non-Facility Pricing Amount = [(Work RVU * Work GPCI) + (Transitioned Non-Facility PE RVU * PE GPCI) + (MP RVU * MP GPCI)] * Conversion Factor (CF) ^[3]

See also

• Medicare Sustainable Growth Rate

References

1. ↑ https://www.cms.gov/PhysicianFeeSched/downloads/Alt_GPCI_Payment_Locality_Structures_Review.pdf, p.i
2. ↑ http://www.cms.hhs.gov/PhysicianFeeSched/
3. ↑ http://www.cms.hhs.gov/PhysicianFeeSched/01_overview.asp 1

External links

• PlexisWeb Glossary Definition
• Physician Fee Schedule Overview, Centers for Medicare & Medicaid Services