An Institute of Medicine (IOM) report released Tuesday concluded that while there are wide discrepancies in access to and quality of care across geographic areas, the variations were unlikely to be influenced by changes in Medicare reimbursement rates to providers. In light of this, the IOM committee recommended Medicare should not try to address the shortages of doctors and healthcare providers by raising reimbursements to entice practitioners to practice in underserved areas. You can read the report here.

Instead of altering payments, the committee recommended that Medicare pay for services such as telemedicine that improve access to medical care in underserved regions. It also encouraged states to change scope of practice laws so that nurse practitioners can provide more care.
Soon the IOM will release a separate report looking into why Medicare spends more on patients in some areas of the country than others without always giving better care.