Hospital Wage Index – Healthcare Economist

Measuring Variation in Labor Costs for the NHS

2010-07-06Jason Shafrin3 Comments

The cost of running a hospital in New York City is much higher than running a hospital in Bozeman, Montana. To take into account these cost differences, the Centers for Medicare and Medicaid Services (CMS) has created a wage index to adjust the inpatient prospective payment system (IPPS) for differences in labor costs. However, the…

Proposed Reforms to Medicare’s Hospital Wage Index

2010-03-25Jason Shafrin2 Comments

A hospital in New York City faces higher labor costs than a hospital in Billings, Montana. To take into account these cost differences, Medicare adjusts hospital payments to reflect these cost differences using a hospital wage index. As currently constructed, however, many hospitals petition to be included in labor markets where they would receive a…