• Article

Payment areas for physician services

An important aspect of the Medicare Fee Schedule is defining payment areas for physician services. This paper analyzes the accuracy of alternative geographic configurations in tracking physician practice input price differences among counties. Tradeoffs among accuracy in accounting for input price variation, number and complexity of payment areas, and payment differences across area boundaries are also discussed


Pope, G., & Merrell, K. (1992). Payment areas for physician services. Inquiry, 29(1), 9-20.