CHA News Article

IOM Report Finds Variation in Health Spending Not Explained by Geography

The Institute of Medicine (IOM) this week released a report finding that, while regional differences in Medicare and commercial health care use and spending exist, there is much variation within geographic areas, no matter how broadly or narrowly the areas are defined.

 The IOM committee recommends that Congress not adopt a geographically based value index for Medicare payments because the majority of health care decisions are made at the provider or health care organization level and cannot be explained by geography. To improve value, the IOM committee recommends that the Centers for Medicare & Medicaid Services (CMS) continue to test payment reforms such as value-based purchasing, patient-centered medical homes, bundled payments and accountable care organizations. The report is available for download at