CMS Releases Wage Index Files for Review

(PYA Alert dated October 24, 2007)

The Centers for Medicare and Medicaid Services (CMS) released the FY 2009 wage index files on October 5, 2007. These files contain FY 2005 Worksheet S-3 wage data for all hospitals subject to the Prospective Payment Systems (PPS). This wage data will be utilized by CMS to adjust up to 70% of Inpatient PPS rates effective for discharges on or after October 1, 2008. The same wage data will also be used to adjust 60% of Outpatient PPS rates effective for services provided on or after January 1, 2009.

Hospitals should take steps to ensure their wage data is reported accurately and follows Medicare instructions. Hospitals should check their worksheet S-3 data for reasonableness by comparison to the prior year and comparison to peer hospitals in their respective labor market.

Hospitals will have until December 7, 2007 to request revisions to their Worksheet S-3 wage data. Requests must include documentation supporting any revisions. Feel free to contact us if you would like to have the reimbursement professionals at PYA review your wage data. We can prepare the comparative analysis described above and assist you in review of any variances or omissions. If you have questions on Medicare Wage Data or other Medicare matters, please contact Lisa Price or Butch Bullock at (800) 270-9629.

The information provided via PYA Alert, Tax Planning Alert, or Audit and Accounting Alert should not be construed as accounting, auditing, consulting, or legal advice on any specific facts or circumstances. The contents are intended for general information purposes only.  Please contact us at (800) 270-9629 to discuss your specific situation or to discuss any specific questions you may have.

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