Their estimates of office costs are more similar to the PPCIS than to the SMS.
An alternative MEI (AMEI) is constructed in this article using cost shares from the 1988 PPCIS and MEI line item inflation rates.
actual) MEI values and AMEI values constructed using MEI inflation proxies and the national PPCIS cost shares.
Table 6 presents AMEIs calculated using the PPCIS weights for urban-rural location and census division.
The 1988 PPCIS allows GPCIs to be constructed with specialty, urban-rural, and division-specific cost shares to determine if the GPCI can be reasonably limited to a single national set of cost shares.
The AGPCI for a representative procedure using 1988 PPCIS cost weights can be calculated as:
The weights on the indexes are the PPCIS cost shares; the constant (0.
To examine the sensitivity of the GPCI to the 1988 PPCIS cost shares versus the SMS cost shares, the difference AGPCI -- GPCI was calculated for each geographic area.
Although the SMS and PPCIS cost shares yield GPCIs that are very similar to each other, both are at a highly aggregated, national level.
To investigate whether the differences between specialty-specific AGPCIs and the national AGPCI are meaningful, specialty-specific AGPCIs were calculated for each of the 16 specialty groups using the appropriate specialty-specific PPCIS 1988 cost-share weights.
For psychiatrists, the greatest differentials occur in areas with high malpractice premiums, when weighted by specialty-specific AGPCI cost shares versus higher 1988 PPCIS national malpractice shares.