“If a tree falls in a forest and no one is around to hear it, does it make a sound?”
One of the most challenging issues in health care is documentation. Like the above quote, it’s become somewhat of a cliché, but nevertheless it’s true: if you didn’t document it, you didn’t do it or it didn’t happen. This mantra is equally important for services you provide to patients, as well as services you purchase from others.
The hospital must ensure that supporting documentation for both salaries and hours are based on actual data maintained in a form that permits validation by the contractor. The use of estimates for these amounts is unacceptable for the wage index.
When reporting contract labor for wage index, ensure you have hours to match expense (Pub 15-2, §4005.2)
Further guidance on the types of hours that should be included on Worksheet S-3, part II can be found on the Centers for Medicare and Medicaid Services (CMS) website:
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: