For many facilities, few variables contribute to the Medicare reimbursement rates are as important as the wage index. This index measures relative differences in the average hourly wage (AHW) in each labor market area as compared to the national AHW. The data used in the annual wage index is based on information reported on the Medicare cost report. Each facility has a responsibility to provide accurate data since each labor market area competes with all other labor markets nationally for a fixed pool of Medicare revenue.
Maxwell Healthcare Consulting provides resources to review the reporting of AHW data via the cost report. This includes making appropriate adjustments to payroll data. Whether excluding certain personnel, employee benefits cost or worker classifications, MHC can help minimize wage index audit adjustments. This ensures the facility is doing its part to obtain the highest possible wage index factors within the facility’s region.