One of the biggest challenges in the health care industry is the hospital wage index. Because this index drives hospitals’ diagnosis-related group (DRG) and ambulatory payment classification (APC) payments and reimbursement, it must be as complete as possible and in compliance with regulations and manual instructions.
Medicare Administrative Contractors (MACs) annually review each acute care hospital’s wage index survey, which is submitted with the hospital’s annual cost report filing. The burden is on the hospital to ensure and even prove to the MAC that the wage index survey is completed accurately. Yet often the MAC requests information in such a short time frame that pulling the information to prove accuracy can be overwhelming, particularly since many hospitals find it difficult to internally sustain the level of expertise required to respond to such documentation requests.
We can help you prepare your wage index survey and determine whether it’s inclusive of all possible components of payroll costs and appropriately handles excluded payroll, contract labor, and other salary items such as home office, physicians, and interns and residents. This includes:
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