News Releases

Wage Index Initiative Moves Forward

In an effort to maximize reimbursement for its member hospitals, The Center for Health Affairs has once again contracted with the Reimbursement Alliance (RA) Group to conduct a wage index analysis of Northeast Ohio hospitals for federal fiscal year 2014. Like the projects from the previous two years, site visits to member hospitals will commence in the fall, during which the RA Group will work with reimbursement specialists from each hospital to prepare cost report data ― ensuring it is presented as advantageously as possible ― to submit to the region’s fiscal intermediary. From there, The Center’s consultants will monitor the progress of the fiscal intermediary’s review and respond to any questions that may arise. 

Used by the Centers for Medicare and Medicaid Services (CMS) to account for regional differences in the cost of wages in the Medicare reimbursement formula, wage index can have a significant impact on the level of reimbursement that region receives for Medicare patients. Careful review can uncover adjustments that ultimately make a significant impact on reimbursement in the region. In fiscal year 2013, for instance, The Center for Health Affairs member hospitals will receive a projected $10 million in additional reimbursement as a result of the wage index initiative. 

For additional information on The Center’s wage index initiative contact Lisa Anderson at 216.255.3660 or lisa.anderson@chanet.org or Deanna Moore at 216.255.3614 or deanna.moore@chanet.org.