19.02.2013 Views

Notice: This CMS-approved document has been submitted - Philips ...

Notice: This CMS-approved document has been submitted - Philips ...

Notice: This CMS-approved document has been submitted - Philips ...

SHOW MORE
SHOW LESS

Create successful ePaper yourself

Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.

<strong>CMS</strong>-1403-FC<br />

index data, that the higher level is justified by<br />

year-to-year economic changes.<br />

The MEI measures the weighted-average annual price<br />

change for various inputs needed to produce physicians'<br />

services. The MEI is a fixed-weight input price index,<br />

with an adjustment for the change in economy-wide<br />

multifactor productivity. <strong>This</strong> index, which <strong>has</strong> CY 2000<br />

base year weights, is comprised of two broad categories:<br />

(1) physician's own time; and (2) physician's PE.<br />

The physician's own time component represents the net<br />

income portion of business receipts and primarily reflects<br />

the input of the physician's own time into the production<br />

of physicians' services in physicians' offices. <strong>This</strong><br />

category consists of two subcomponents: (1) wages and<br />

salaries; and (2) fringe benefits.<br />

The physician's PE category represents nonphysician<br />

inputs used in the production of services in physicians'<br />

offices. <strong>This</strong> category consists of wages and salaries and<br />

fringe benefits for nonphysician staff and other nonlabor<br />

inputs. The physician's PE component also includes the<br />

following categories of nonlabor inputs: office expense;<br />

medical materials and supplies; professional liability<br />

insurance; medical equipment; prescription drugs; and other<br />

expenses. The components are adjusted to reflect<br />

945

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!