By MERRILL GOOZNER

Dartmouth scholars have revisited their analysis of regional variation in health care spending and found contrary to the assertions of some critics that cost-of-living differentials do not account for much of the difference. However, they confirmed that some big cities with high poverty concentrations that also serve as training grounds for future physicians may have been unfairly lumped in with areas that overuse health care services.
The new study in Health Affairs showed after adjusting for price differences that Miami, Florida and McAllen, Texas still led the pack in terms of how much Medicare spent on each beneficiary. Both areas still spent nearly three times more than the lowest spending regions of the country, which remained Honolulu, Hawaii and LaCrosse, Wisconsin.
There were a few areas of the country where the adjustments made a big difference, and they were mostly big cities. The Bronx and Manhattan in New York City fell 39 and 33 percent, respectively, from the adjustments. But price was only a minor factor, according to the researchers, who were led by Daniel Gottlieb of the Dartmouth Institute for Health Policy and Clinical Practice.
Much of the reason why the New York metropolitan area is so costly is not because of the wage index per se (what we usually think of as “cost-of-living” adjustments), but because the CMS pays hospitals in the New York area so much to reimburse them for graduate medical education and caring for disproportionate shares of low-income patients.
Other high-spending areas frequently targeted by critics did not do so well under the adjustments. Los Angeles, for instance, dropped just 14 percent after adjusting for cost-of-living, graduate education and disproportionate share payments for low-income residents.
The Medicare Payment Advisory Commission issued a report late last year that suggested regional variation in use patterns were less than the Dartmouth Atlas of Health scholars had previously estimated. This latest study says regional variation still matter — a lot. The debate clearly isn’t over.
Here’s the list of the ten highest and ten lowest spending areas in the country both before and after adjustments for price, graduate medical education and disproportionate share payments:
10 high-spending hospital regions:
BEFORE AFTER % CHG.
FL-Miami $15,909 $14,966 6%
TX-McAllen 13,633 13,881 -2
NY-Bronx 12,004 8,653 39
NY-Manhattan 11,744 8,861 33
TX-Harlingen 11,489 11,324 1
CA-Los Angeles 10,674 9,325 14
NY-Long Island 10,608 8,740 21
MI-Dearborn 10,460 9,791 7
LA-Monroe 10,226 11,385 -10
MI-Detroit 9,954 9,541 4
10 low-spending hospital regions:
ND-Minot 6,033 6,711 -10
VA-Lynchburg 6,022 6,524 -8
CO-Grand Junction 5,983 6,075 -2
OR-Eugene 5,968 5,798 3
IA-Iowa City 5,902 6,254 -6
SD-Rapid City 5,854 6,176 -5
OR-Salem 5,810 5,642 3
IA-Dubuque 5,799 6,219 -7
WI-La Crosse 5,715 5,757 -1
HI-Honolulu 5,293 5,212 2
5 hospital regions with biggest drop due to price and other factors:
NY-Bronx 12,004 8,653 39
NY-Manhattan 11,744 8,861 33
CA-Alameda County 9,251 7,094 30
CA-San Francisco 8,140 6,278 30
CA-San Mateo County 7,878 6,104 29