tci Medicare Compliance & Reimbursement - 2006 Issue 3

INDUSTRY NOTES: Hospital Wage Index May Not Accurately Reflect Occupational Mix

Reporting discrepancies could bias wages upward and distort adjustments.Proposed changes to the occupational mix survey show major idiosyncrasies, according to the Medicare Payment Advisory Commission.The Centers for Medicare & Medicaid Services recently proposed changes to the occupational mix survey, which it will use to adjust hospital wage index computations. The adjustment reflects geographic differences in wage levels by taking into account variations in worker mixes in various labor markets.In MedPAC's review, it pointed out a mismatch between the hours and wages hospitals submit on their Medicare cost reports and those they'll report on the occupational mix...

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