Hospitals

OIG audit: CMS should improve hospital wage index adjustments for rural hospitals

The Centers for Medicare and Medicaid Services’ hospital wage index system isn’t really performing ample to assistance facilities in the base quartile, specially people in rural spots, according to an audit conducted by the Division of Health and fitness and Human Solutions Place of work of Inspector Normal.

OIG’s audit identified that of the hospitals in the base quartile of the location wage index for the federal fiscal yr 2020, 53% were being in rural regions. These hospitals also tended to be lesser and reduce-volume facilities, according to the report.

Simply because of these conclusions, the watchdog company urges CMS to focus its base quartile wage index adjustment on hospitals with reduced or negative financial gain margins somewhat than the kinds with higher, favourable financial gain margins.

It even further recommended that CMS appear into why some hospitals in a certain location could pay back higher wages than other hospitals

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