index convention

Space-saving rule used in the Index, which is the last section of the annually published Current Procedural Terminology code book. For example:KneeIncision (of)In this example, the word in parentheses (of) does not appear in the Index, but it is inferred. As another example:PancreasAnesthesia (for procedures on)In this example, because there is no such entity as pancreas anesthesia , the words in parentheses are inferred (i.e., anesthesia for procedures on the pancreas).

Indexation

Adjustment of postretirement benefits to compensate for the effects of inflation such as increasing pension benefits to the Consumer Price Index (CPI) to make up for a change in the cost of living.
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UK: A method whereby benefits or sums insured are increased periodically by a factor derived from an index of prices or earnings. Household building sums insured are linked to a rebuilding cost index and contents cover increases annually in line with an index reflecting replacement costs. Regulations oblige exempt approved schemes to increase pension payments for post April 1997 service by at the least the appropriate percentage taken from the retail price index up to 5 per cent per annum but this cap reduces to 2.5 per cent in 2005 under what is called limited price index (LPI). LPI does not apply to AVCs and FSAVCs. See ESCALATION; STABILITY INDEX CLAUSE.

Indicator

1. Key clinical value or quality characteristic used to measure, over time, the performance, processes, and outcomes of an organization or some component of health care delivery. 2. Correct coding initiative (CCI) indicators designate which procedure codes can be pulled out of a bundle and which cannot.

Indigent

Individual who is not able to pay for medical services or treatments and is not eligible for benefits under the Medicaid or other public assistance program.

Indirect costs

1. Medical practice business overhead costs that are not associated with the physician’s medical service directly provided to the patient (e.g., rent, office supplies, utilities). 2. In managed care programs, cost that cannot be associated directly with a certain activity, service, or product. Indirect costs are usually distributed among the plan’s services in proportion to each service’s share of direct costs.

Indirect medical education adjustment

Change or modification applied to payments under the prospective payment system (PPS) for hospitals that operate approved graduate medical education programs. For operating costs, the adjustment is based on the hospital’s ratio of interns and residents to the number of beds. For capital costs, the adjustment is based on the hospital’s ratio of interns and residents to average daily occupancy.