Sunday, November 5, 2017

Very Very Very Brief Blog: PAMA and Weighted Median

The briefest note.  I've seen some sources I would think know better, criticize CMS for calculating PAMA prices at Weighted Median rather than other calculations like Average. 

It's a dead issue.  The 2014 PAMA statute clearly required calculations solely for: Weighted Median.  It wasn't a CMS option to do otherwise.

Medians can be above or below the average.  If the data is 1,5,10, the median and average are nearly the same.  If the data is 1,3,10, the median is well below the average.  If the data is 1,8,10, the median is way above the average.