Work, PE and MP Geographic Practice Cost Index

The Medicare physician fee schedule amounts are adjusted to reflect the variation in practice costs from area to area.
A geographic practice cost index (GPCI) has been established for every Medicare payment locality for each of the three components of a procedure’s relative value unit (i.e., the RVUs for work, practice expense, and malpractice).
The GPCIs are applied in the calculation of a fee schedule payment amount by multiplying the RVU for each component times the GPCI for that component.
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