- Item-by-item costing
- Geographic adjustment
- Medical care inflation
- Present value to life expectancy
When a treating professional or certified life care planner has prepared a plan of future medical and attendant care, the economist's job is to price that plan accurately and reduce the future stream to present value. Dr. Pettingill has costed plans ranging from modest post-injury physical therapy regimens to comprehensive plans for ventilator-dependent and spinal cord injured plaintiffs.
We cost every line item against current, locally sourced prices — not national averages where local prices are available. Where the plan calls for replacement of durable medical equipment on a defined cycle, we model the replacement stream rather than treating it as a single-cost item.
Medical care inflation is treated separately from general inflation, using the medical services CPI components published by the Bureau of Labor Statistics. The discount rate is selected from the U.S. Treasury yield curve, matched to the duration of the loss.