Under the PCP methodology, the price paid for an addi-tional surgery is a product of two factors. The first factoris the cost weight (RIW) of the case mix group to whichthe case is assigned. The second factor is the base priceper weight set by the HSPO across all cases. The baseprice varies according to whether the surgery occurs in aday surgery or inpatient setting: currently, the base priceper weight set by the HSPO is $1520 for each inpatientweighted case and $3040 for each day surgery weightedcase. As an example, the price for a day surgery case witha CACS RIW of 0.50 would be $3040 multiplied by 0.50, or$1520. The higher price per weight for day surgery relativeto inpatient surgery signals the HSPO’s emphasis on thepolicy objective of incentivizing additional volumes of daysurgery activity. While there is no published informationavailable providing insight into the process of how the baseprice per inpatient and day surgery weight were derived,