SEC. 1157. INSTITUTE OF MEDICINE STUDY OF GEOGRAPHIC ADJUSTMENT FACTORS UNDER MEDICARE.

[a] In General- The Secretary of Health and Human Services shall enter into a contract with the Institute of Medicine of the National Academy of Science to conduct a comprehensive empirical study, and provide recommendations as appropriate, on the accuracy of the geographic adjustment factors established under sections 1848[e] and 1886[d][3][E] of the Social Security Act [42 U.S.C. 1395w-4[e], 11395ww[d][3]].

[b] Matters Included- Such study shall include an evaluation and assessment of the following with respect to such adjustment factors:

[1] Empirical validity of the adjustment factors.

[2] Methodology used to determine the adjustment factors.

[3] Measures used for the adjustment factors, taking into account--

[A] timeliness of data and frequency of revisions to such data;

[B] sources of data and the degree to which such data are representative of costs; and

[C] operational costs of providers who participate in Medicare.

[c] Evaluation- Such study shall, within the context of the United States health care marketplace, evaluate and consider the following:

[1] The effect of the adjustment factors on the level and distribution of the health care workforce and resources, including--

[A] recruitment and retention that takes into account workforce mobility between urban and rural areas;

[B] ability of hospitals and other facilities to maintain an adequate and skilled workforce; and

[C] patient access to providers and needed medical technologies.

[2] The effect of the adjustment factors on population health and quality of care.

[3] The effect of the adjustment factors on the ability of providers to furnish efficient, high value care.

[d] Report- The contract under subsection [a] shall provide for the Institute of Medicine to submit, not later than one year after the date of the enactment of this Act, to the Secretary and the Congress a report containing results and recommendations of the study conducted under this section.

[e] Funding- There are authorized to be appropriated to carry out this section such sums as may be necessary.