OIG penalizes two more hospitals for incorrect wage index reporting
Healthcare Auditing Weekly, June 23, 2006
The OIG is requesting that two more hospitals submit revised cost reports. That brings the total of wage data reports the OIG has filed since 2004 to 13.
The OIG has found that
Click here to read the full report.
Click here to read the full report.
With the number of recent wage index reports from the OIG, hospital auditors would be smart to look into their own reporting data.
According to the OIG, DRG reimbursement rates are composed of a standardized amount that includes a labor-related share. CMS adjusts the labor-related share by the wage index applicable to the area in which a hospital is located. All hospitals within a distinct metropolitan statistical area or within a rural statewide area receive the same labor payment adjustment.
If your facility is one of the only facilities in a metropolitan statistical area, incorrect wage data could affect future DRG reimbursement rates--not only for your facility, but for others in your DRG rate group.
In other news, the OIG has recommended that Texas Health and Human Services revise its method of computing cost outlier payments. A recent OIG audit determined that the state did not limit cost outlier payments to exceptionally high-cost cases. Specifically, the OIG reports, the state did not use current cost-to-cart ratios, used noncovered charges in calculating outlier payments, and did not have sufficient policies and procedures in place to monitor cost outlier payments.
Click here to read the full report.
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