This issue brief examines the sources of variation in Medicare payment and costs across different geographic areas and different sites of care. It discusses the payment policies that address variation in the cost of providing care, such as input price adjustments and special payments to hospitals. It also considers differences due to beneficiaries’ health status and in physician practice patterns. Finally, it explores policy options to address Medicare geographic variation.
Super, Nora, "The Geography of Medicare: Explaining Differences in Payment and Costs" (2003). National Health Policy Forum. Paper 118.