area wage index

area wage index

A cross-sectional adjuster of wages, which is re-computed annually to centre on a value of 1.00; it represents the national aggregate hospital hourly wage; the values have ranged from as low as 0.65 to as high as 1.50.
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the area wage index for hospitals), capitated plans may attract more risk-averse enrollees concerned about the risk of large out-of-pocket copayments in the FFS coverage.
Two other variables for the area were obtained from the CMS public website: the area wage index used for hospital payment calculations, and the number of Advantage plans offered.
Following execution of a letter agreement between the hospital and RRI, it made a last minute application on behalf of the hospital to reinstate the more favorable Fort Pierce area wage index.
The hospital area wage index is used by CMS to adjust prospectively set Medicare payment rates for regional variation in labor costs.
The bill, Area Wage and Base Payment Improvement Act, establish a floor on the area wage index, which is used to adjust Medicare payments.
HHS might implement the process upon completion of the data collection necessary to calculate an area wage index for SNF workers.
Central to that agenda are measures already introduced to help ensure that rural hospitals can recruit and retain the highly qualified staff they need by establishing a "floor" on the Medicare area wage index and increasing Medicare base payments for rural and also urban hospitals.
Under the PPS, reimbursement rates are determined by using factors that include (1) the average standardized amount of allowable individual hospital inpatient operating costs, and (2) the area wage index applicable to the hospital.
ht] is deflated by the HCFA Area Wage Index and the Consumer Price Index (CPI) and transformed into log values.
The area wage index is based on several calculations: The labor market area average hourly wage is determined by summing total hospital wages and dividing by total hours, and the area wage index value is determined by dividing the area average hourly wage by the national average hourly wage.
To adjust for area input costs, we use the HCFA area wage index.
The labor categories used to construct an area wage index should be as homogeneous as possible, so that pure labor cost variation is isolated from area differences in the characteristics of the work force.

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