Wage Index Contract Labor – It Takes a Village

Marie White

Marie White

There’s an expression, “It takes a village to raise a child.” The same could be said for a hospital—it takes a village to run a hospital. Beyond the nurses and doctors who take care of the patients, there are housekeepers, radiology and laboratory techs, maintenance folks, and a myriad of others who all contribute to the day-to-day operations of the hospital.

Worksheet S-3, Part II is used to report wage and hour data which is needed to update the hospital wage index applied to the labor-related portion of the national average standardized amounts of the PPS. It is important for hospitals to ensure that the data reported on Worksheet S-3, Parts II, III and IV, are accurate.

Tip #4:

For Wage Index contract labor you may include clinical/patient care-related and/or executive/administrative services (Pub 15-2, §4005.2).

Further guidance on the types of expenses that should be included on S-3, Part II can be found on the Centers for Medicare and Medicaid Services (CMS) website:

Provider Reimbursement Manual 15-2

Questions? Please contact Marie White at 612.253.6546 or mewhite@eidebailly.com.

 

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