3 Tricks for Finding Hidden Cash in Medicare Cost Reports
“We worked with a large Michigan hospital that was missing between $3-$4 million, though typically [this type of review of Medicaid yields] $200k,” says Soper.
Trick #3: Wage Index. Medicare has
Since the formula uses an average hourly wage of all hospital employees, there’s a potential for hospitals to be underpaid by Medicare. How? Soper explains that at one hospital with which he worked, all the on-call physicians were paid for eight hours, regardless of whether or not they were needed. The hospital was counting those unworked hours in their formula. However, Medicare regulations note that you only need to count hours worked in the average hourly wage.
Moreover, contracted physicians’ and nurses’ hourly wages should be counted in a hospitals’ average hourly wage—doing so can cause you to justifiably be geographically re-classed by Medicare, resulting in your hospital receiving all the money owed through this program.
There is plenty of money in Medicare and much of it is rightfully owed to hospitals—it just needs to be claimed. These three tricks aren’t quick, but by digging into your patient files and uttering a little “abracadabra” you just might levitate your bottom line.
Karen Minich-Pourshadi is a Senior Editor with HealthLeaders Media.
- CMS Seeks to 'Rapidly Reduce' Medicare Spending with $1B in Grants
- Building a Better Healthcare Board
- Case Study: Advance Care Conversations
- Patient Harm Data to Remain on Medicare's Hospital Compare Site
- Quiet ORs Better for Patient Safety
- Hard-Nosed About Physician Teamwork
- Hospital Pricing Data Dump Won't Hurt You, Yet
- CMS Releases Hospital Pricing Data
- Tavenner Confirmed as CMS Administrator
- Evidence-Based Practice and Nursing Research: Avoiding Confusion