IOM suggests elimination of geographic pricing variations

The wide range of the cost of healthcare delivery in the United States is connected primarily to how post-acute care services are utilized, according to a new report by the Institute of Medicine. The report linked the costs to price variations in nursing homes and home healthcare participating in the Medicare program. However, the report also linked high costs to differences in what hospitals and doctors charge commercial insurance. The IOM suggested that Medicare use its economies of scale to better align prices and incentives among the nation's providers and eliminate geographic differences in reimbursements, which it called "impractical." Article

 

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