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

The Facilities for Medicare and Medicaid Services’ clinic wage index technique is just not performing ample to support facilities in the bottom quartile, precisely those in rural areas, according to an audit executed by the Section of Wellness and Human Expert services Office of Inspector Basic.

OIG’s audit discovered that of the hospitals in the bottom quartile of the location wage index for the federal fiscal year 2020, 53% ended up in rural parts. These hospitals also tended to be smaller and reduced-quantity facilities, according to the report.

Because of these results, the watchdog agency urges CMS to aim its bottom quartile wage index adjustment on hospitals with very low or damaging profit margins fairly than the kinds with better, constructive profit margins.

It additional instructed that CMS seem into why some hospitals in a specified location could fork out better wages than other hospitals in the exact same location,

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