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Appendix E: Exchange of Letters Between House of Representatives Quality Coalition and Committee Chair Frank Sloan
Pages 189-194

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From page 189...
... Appendix E Exchange of Letters Between House of Representatives Quality Coalition and Committee Chair Frank Sloan 189
From page 192...
... As described in Chapter 1 of the phase 1 report, the committee's technical and methodological approach to the study was evidence-based and grounded in the recognition that its primary charge in phase 1 of the study was to improve the accuracy of the adjustment factors and the methods and measures used to determine them.1 As described in the report, principles 3, 4, and 5 emphasized improving accuracy by reflecting market prices faced by all health care employers in local markets.2 As labor is the most important input for both hospitals and physician practices, the committee devoted an entire chapter (Chapter 2) of the phase 1 report to an examination of the factors that cause labor costs faced by providers to vary geographically.
From page 193...
... Finally, the committee understands that the QCC is dissatisfied with our recommendations on the occupational proxies and percentage calculation pertaining to the physician work GPCI. As noted in the phase 1 report and the November 15, 2011 meeting, the committee laid out a specific process for CMS to follow to conduct analysis and modify the work adjustment based on the analytical results.


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