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Table
4 - Description of Adjustment Methodology
The authors derive the adjustment to the 1995 per capita physician standard
in the following manner:
LET: x(i) = estimated 1995 IRM-adjusted per
capita physician requirement standard for scenario (i):
Req = per capita physician requirement standard for 1995.
P(2005)(0) = The IRM projected 2005 percentage change in the requirement
for the status quo (scenario i):
P(2005)(i) = The IRM projected 2005 percentage
change in the per capita requirement for the scenario (i):
Apply the following formula:
(((P(2005)(i)/100)(Req)) - (((P2005)(0)/100)(Req)+1(Req)) = x(i).
The percentage change is divided by 100 to convert the value to decimal
equivalent.
To Illustrate:
In the case of scenario 3, the percentage adjustment produced by the
IRM was P(2005)(3) = 12.1%; for scenario 1, it was P(2005)(1) = 10.4%.
The 1995 expert average requirement standard for Metro-core was Req
= 72.
Substituting:
((((12.1/100)(72) - (10.4/100)(72) + 1(72))) = (.121(72) - .104(72)
+ 1(72)) =
(.121-.104 + 1)72 = (1.017)72 = 73.1, the 1995 requirement standard
of 72 adjusted for changes that are due only to scenario 3.
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