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.
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:
Welcome to Medicare Cost Report Talk! Medicare Cost Reports can be like the famous line from the movie Forrest Gump: “Life is like a box of chocolates, you never know what you’re going to get.” Until now! We’re starting this blog to share cost report tips to help you learn more about this complex document, and maybe save you some time in the process.
The Medicare cost report is a required filing for any facility that treats Medicare patients. Each “provider type” (e.g., hospital, nursing home, rural health clinic, home health agency, etc.) has its own specific report. The report contains information such as facility characteristics, utilization, costs and charges.
The instructions for completing each type of report are complex. They are available on the Centers for Medicare and Medicaid Services (CMS) website: