Positively Impact Your Hospital’s Payment Stream with DSH

With all the recent changes in health insurance, it would be simple to assume that how much a hospital will be paid is out of its control. But there are still some opportunities for a hospital to potentially impact its payment stream from Medicare in a positive way. 

For some Prospective Payment System (PPS) hospitals there is an additional funding mechanism to pay for “disproportionate share” (DSH). DSH is funding to hospitals that treat indigent patients under which facilities are able to receive at least partial compensation. The dollars paid are determined using a formula that includes several factors which are determined by the individual hospital and by CMS.

A hospital can influence its own factor by monitoring and reviewing patient days to ensure it is capturing all days that are permitted by the regulations.

Tip #18:

Review DSH percentage for accuracy and confirm appropriate amounts under the new payment methodology.

Further guidance can be found on the Centers for Medicare and Medicaid Services (CMS) website:

Disproportionate Share Hospital (DSH)

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

 

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.