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 <subject>Beneficiaries</subject>
 <subject>Comparative analysis</subject>
 <subject>Evaluation methods</subject>
 <subject>Financial analysis</subject>
 <subject>Medical economic analysis</subject>
 <subject>Medical fees</subject>
 <subject>Medicare</subject>
 <subject>Physicians</subject>
 <subject>Statistical methods</subject>
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 <title>Medicare Spending: Preliminary Findings Regarding an Approach Focusing on Physician Practice Patterns to Foster Program Efficiency</title>
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<abstract>Medicare&apos;s current system of spending targets used to moderate
spending growth for physician services and annually update	 
physician fees is problematic. This spending target		 
system--called the sustainable growth rate (SGR) system--adjusts 
physician fees based on the extent to which actual spending	 
aligns with specified targets. In recent years, because spending 
has exceeded the targets, the system has called for fee cuts.	 
Since 2003, the cuts have been averted through administrative or 
legislative action, thus postponing the budgetary consequences of
excess spending. Under these circumstances, policymakers are	 
seeking reforms that can help moderate spending growth while	 
ensuring that beneficiaries have appropriate access to care. For 
today&apos;s hearing, the Subcommittee on Health, House Committee on  
Energy and Commerce, which is exploring options for improving how
Medicare pays physicians, asked GAO to share the preliminary	 
results of its ongoing study related to this topic. GAO&apos;s	 
statement addresses (1) approaches taken by other health care	 
purchasers to address physicians&apos; inefficient practice patterns, 
(2) GAO&apos;s efforts to estimate the prevalence of inefficient	 
physicians in Medicare, and (3) the methodological tools	 
available to identify inefficient practice patterns programwide. 
GAO ensured the reliability of the claims data used in this	 
report by performing appropriate electronic data checks and by	 
interviewing agency officials who were knowledgeable about the	 
data.</abstract>
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<note>Testimony</note>
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 <topic>Comparative analysis</topic>
 <topic>Evaluation methods</topic>
 <topic>Financial analysis</topic>
 <topic>Medical economic analysis</topic>
 <topic>Medical fees</topic>
 <topic>Medicare</topic>
 <topic>Physicians</topic>
 <topic>Statistical methods</topic>
 <topic>Strategic planning</topic>
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