Rural Hospital Wages and the Prospective Payment System Wage Index: 1990-1997
Changes in the wage survey instruments have addressed several of the problems regarding accuracy and precision of wage and hour data. Since 1992 the Medicare Geographic Classification Review Board (MGCRB) has reviewed individual hospital cases to address situations where the county boundaries clearly do not conform to economically coherent markets. This study analyzes the index values and individual hospital hourly wage data for a seven-year period, with and without the effects of hospital re-designations, to determine if the incremental changes made since 1990 have improved the precision and equity of the index as a national payment adjuster.
PPS Inpatient Payment and the Area Wage Index
North Carolina Rural Health Research and Policy Analysis Center
This fact sheet discusses how inpatient rates are calculated, the role of the wage index, and issues surrounding the wage index and reimbursement to rural hospitals by Medicare under the Prospective Payment System.