Auditing wage data is critical
Compliance Monitor, January 4, 2006
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It's important to audit cost reports for one reason in particular: wage data. CMS uses hospital wage data to determine diagnosis-related group (DRG) amounts by metropolitan statistical area (MSA).
As such, reporting the wrong wage data on an end-of-year hospital cost report creates a ripple effect you'll want to avoid. If your facility is one of a few that comprise a metropolitan statistical area, incorrect wage could affect future DRG reimbursement rates-not only for your facility, but for others in your DRG rate group.
This tip is an excerpt from Strategies for Health Care Compliance.
Editor's note: If you have a tip that you would like to share with your compliance peers, please send it to Compliance Monitor Editor Kelly Bilodeau and we'll publish it in a future issue of Compliance Monitor.
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