tci Medicare Compliance & Reimbursement - 2006 Issue 38

HOSPITALS: Court Order Drives 2007 Inpatient-Hospital Payment Rates

New occupational-mix adjustment doesn't yield big changes to wage index. Good news: Medicare will allow you to reclassify geographic assignments so you can receive payments using another area's wage index under the fiscal year 2007 inpatient prospective payment system (IPPS).The Centers for Medicare & Medicaid Services (CMS) had completed the final rule for its FY 2007 IPPS back on Aug. 1 but called the payment rates "tentative." CMS had to calculate the rates using the final occupational mix adjusted wage indices, which the agency gathered from a collection of new occupational-mix survey data. CMS recently completed the...

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