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Hospital Notice: 07-004
Original Issue Date: May 08, 2007
FROM: Medicare Communications
SUBJECT: Availability of the Final Federal Fiscal Year (FY) 2008 Wage Index Data Public Use Files and Deadline for Requesting Corrections to the Data
Dear Hospital Representative:
The Centers for Medicare & Medicaid Services (CMS) released the final FY 2008 wage index data public use files (PUFs) on May 4, 2007. The files are available for the limited purpose of identifying any potential data entry or transmission errors made by CMS or the fiscal intermediaries, NOT for the initiation of new revision requests. The files include: 1) a file containing the Worksheet S-3 wage data from cost reports beginning during FY 2004, 2) a file containing the 1st quarter calendar year (CY) 2006 occupational mix survey data (that is, for the period January 1, 2006 through March 31, 2006), and 3) a file containing the 2nd quarter CY 2006 occupational mix survey data (that is, for the period April 1, 2006 through June 30, 2006). Data that were incorrect in the February preliminary wage data PUFs, but for which no revision request was received by the March 12, 2007 deadline, will not be considered for correction at this stage. Hospitals should promptly review their final wage index data files to ensure that their Worksheet S-3 wage and occupational mix data are accurate. All requests from hospitals for corrections to their FY 2008 wage index data files must be submitted to and received by both their intermediaries and CMS on or before June 8, 2007.
Hospitals should be reminded that the average hourly wages and wage index values published in the proposed rule are based on data submitted to us by February 26, 2007. Therefore, the data in the proposed rule does not reflect the wage data to be used to calculate the final FY 2008 wage index. In order to ensure the hospital’s wage data are accurately reflected in CMS’s files prior to the calculation of the final FY 2008 wage index, hospitals must review the final wage index data PUFs.
Availability of the Final Wage Index PUFs
The three FY 2008 wage index data PUFs are available on the Internet beginning today, May 4, 2007. The data will be used in the development of the final FY 2008 wage index, which will be published in the Federal Register by August 1, 2007. The final FY 2008 wage index data files are available on the Internet at CMS’s home page. The address for CMS’s home page is: http://www.cms.hhs.gov. To access the PUFs directly, the address is: http://www.cms.hhs.gov/AcuteInpatientPPS/WIFN/list.asp#TopOfPage .
Alternatively, the American Hospital Association generally makes the wage data files available to individual State hospital associations. Hospitals may want to check with their State hospital associations to see if the associations have or will be receiving the files.
Hospitals and their representatives should check the Internet on May 4, 2007. Due to the large volume of inquiries received by CMS, CMS will not be able to respond to any phone or e-mail messages regarding the file release date. CMS will notify the American Hospital Association, the Federation of American Hospitals, and the Association of American Medical Colleges of the release of the files.
We strongly encourage all hospitals to access the final FY 2008 wage index file and verify the accuracy of their Worksheet S-3 wage data. The June 8, 2007 deadline will be hospitals’ last opportunity to request corrections to their data files for the FY 2008 wage index.
Requesting Corrections to the Wage Index Data
As noted in the wage index development timetable (previously sent, and attached for your convenience), hospitals have the right to request corrections to their wage index data files if they can establish that the intermediary or CMS made a data entry or transmission error in the final FY 2008 wage index data files. A hospital requesting a correction must submit its request, along with complete, appropriate detailed documentation, to both its intermediary and CMS, no later than June 8, 2007. Note that June 8 is the deadline for the intermediaries’ and CMS’s receipt of correction requests from hospitals. Requests postmarked by June 8, 2007, but not received until after June 8, are unacceptable.
Neither the intermediary nor CMS will consider the following types of requests in conjunction with this process:
- Requests for corrections to your wage data that was submitted too late to be included in the data transmitted by the intermediaries to CMS on or before April 13, 2007;
- Requests for correction of errors that were not, but could have been, identified during the hospital’s review of the preliminary wage index data files released in February 2007; or,
- Requests to revisit factual determinations or policy interpretations made by the intermediary or CMS during the wage data correction process prior to the May 2007 release of the final FY 2008 wage index files.
Data that were incorrect in the February wage index public use files, but for which no revision request from the hospital was received by the intermediary as of the March 12, 2007 deadline will not be changed at this stage for inclusion in the wage index. Please note that, while intermediaries may make other revisions to hospitals’ wage data at this time as part of the ongoing cost report settlement process, these changes will not be incorporated into the data to be used for the wage index.
The intermediary and CMS will review each request upon receipt and will determine whether or not the request meets the criteria for correction of the final wage index files. If a correction is necessary, the wage data will be revised accordingly and will be included in the FY 2008 wage index, effective October 1, 2007. CMS will send each hospital a letter explaining CMS’s decision regarding the hospital’s correction request.
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Western Pennsylvania Locations: |
Melissa Boland (412) 544-1921 |
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Harrisburg Locations: |
Brian Galbraith (717) 302-4452 |
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Philadelphia Locations: |
Patricia Bowman (215) 654-5660 |
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Timonium Locations: |
Blair Pence (410) 427-8691 |
ATTACHMENT:
FY 2008 Wage Index Development Timetable
CMS Address
Centers for Medicare & Medicaid Services
c/o Wage Index Team, CMM/PPG/DAC
Room C4-08-06
7500 Security Boulevard
Baltimore, Maryland 21244-1850
FY 2008 Hospital Wage Index Development Timetable
(October 2006 through October 2007)
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Date: |
Task: |
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October 6, 2006 |
Release of three preliminary FY 2008 wage index files: 1) unaudited FY 2004 Worksheet S-3 wage data file, 2) 1st quarter CY 2006 occupational mix survey data (that is, from January 1, 2006 through March 31, 2006), and 3) 2nd quarter CY 2006 occupational mix survey data (that is, from April 1, 2006 through June 30, 2006). The FY 2004 wage data file includes Worksheet S-3 wage data from cost reports submitted to HCRIS through June 30, 2006. The CY 2006 occupational mix files includes the data that hospitals submitted by October 4, 2006 for the 1st quarter CY 2006 occupational mix survey data and 2nd quarter CY 2006 occupational mix survey data. The files exclude hospitals designated as CAHs as of September 25, 2006. Notice sent from CMS to Fiscal Intermediaries/Medicare Administrative Contractors (FI/MACs) regarding the December 4, 2006 deadline for hospitals to request revisions to the wage index data as reflected in the preliminary files. Notice must be forwarded by the FI/MACs to hospitals they service to alert hospitals to the availability of the preliminary wage index data files for their review and to inform hospitals that this will be their final opportunity to request revisions. |
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December 4, 2006 |
Deadline for hospitals to request revisions to their Worksheet S-3 wage data and occupational mix data as included in the October PUFs and to provide documentation to support the request. FI/MACs must receive the revision requests and supporting documentation by this date. FI/MACs will have approximately 10 weeks to complete their reviews, make determinations, and transmit revised data to CMS’s Division of Acute Care (DAC). |
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February 12, 2007 |
Deadline for FI/MACs to complete all desk reviews for hospital wage data and transmit revised Worksheet S-3 wage data and occupational mix data to DAC. Worksheet S-3 wage data must be sent to DAC in electronic format (HCRIS hdt format or the Excel manual template provided by CMS). Occupational mix data must be sent to DAC on the electronic Excel spreadsheet provided by DAC. |
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February 16, 2007 |
Deadline for FI/MACs to notify State hospital associations regarding hospitals that fail to respond to issues raised during the desk reviews. The purpose of the letter is to inform the State association and its member hospitals that a hospital’s failure to respond to matters raised by the FI/MAC can result in lowering an area’s wage index value and, therefore, lower Medicare payments for all hospitals in the area. |
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February 23, 2007 |
Release of revised FY 2008 wage index and occupational mix files as PUFs on the CMS web site. These data will have been desk reviewed and verified by the FI/MACs before being published. Also, a file including each urban and rural area’s average hourly wages for the FYs 2007 (final) and 2008 (preliminary) wage indexes will be provided on the CMS web site. |
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March 12, 2007 |
Deadline for hospitals to submit requests (including supporting documentation) for: 1) corrections to errors in the February PUFs due to CMS or FI/MAC mishandling of the wage index data, or 2) revisions of desk review adjustments to their wage index data as included in the February PUFs (and to provide documentation to support the request). FI/MACs must receive the requests and supporting documentation by this date. No new requests for wage index and occupational mix data revisions will be accepted by the FI/MACs at this point, as it is too late in the process to handle data that is new to the FI/MACs in a timely manner. |
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April/May |
Approximate date proposed rule will be published; includes proposed wage index, which is calculated based on the revised wage index data from February; 60-day public comment period and 45-day withdrawal deadline for hospitals applying for geographic reclassification. |
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April 13, 2007 |
Deadline for FI/MACs to transmit final corrected wage index data (in HCRIS hdt format or by the Excel manual template) to DAC for inclusion in the final wage index. Worksheet S-3 wage data must be transmitted in HCRIS hdt format or by the Excel manual template. Occupational mix data must be sent to DAC on the electronic Excel spreadsheet provided by DAC. All wage index data corrections must be transmitted to DAC by this date. FI/MACs must also send written notification to hospitals regarding the hospitals’ March 12, 2007 correction requests by this date. |
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April 20, 2007 |
Deadline for hospitals to appeal FI/MAC determinations and request CMS’ intervention in cases where the hospital disagrees with the FI/MAC’s determination. It should be noted that during this review, we do not consider issues such as the adequacy of a hospital’s supporting documentation, as we believe that the FI/MACs are generally in the best position to make evaluations regarding the appropriateness of these types of issues (which should have been resolved earlier in the process). Requests must be submitted to CMS (and a copy sent to the FI/MAC) by this date. The request must include all correspondence between the hospital and FI/MAC that document the hospital’s attempt to resolve the dispute earlier in the process. |
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Late April |
Notice sent from CMS to each FI/MAC regarding the May 4, 2007 release of the final FY 2008 wage index data PUFs and the June 8, 2007 deadline for hospitals to request corrections to the wage and occupational mix data as reflected in the final files. Notice must be forwarded by FI/MACs to hospitals they service to alert hospitals to the availability of the final wage index and occupational mix data files for their review, and to inform hospitals that this will be their last opportunity to request corrections to errors in the final data. Changes to data will be limited to situations involving errors by CMS or the FI/MAC that the hospital could not have known about before review of the final May PUFs. Data that was incorrect in the October or February wage index data PUFs, but for which no correction request was received by the March 12, 2007 deadline, will not be considered for correction at this stage. |
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May 4, 2007 |
Release of final FY 2008 wage index and occupational mix data PUFs on CMS web page. Hospitals will have approximately one month to verify their data and submit correction requests to both CMS and their FI/MAC to correct errors due to CMS or FI/MAC mishandling of the final wage and occupational mix data. |
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June 8, 2007 |
Deadline for hospitals to submit correction requests to both CMS and their FI/MAC to correct errors due to CMS or FI/MAC mishandling of the final wage and occupational mix data. CMS and the FI/MACs must receive all requests by this date. We emphasize that data that were incorrect in the October or February wage index data PUFs, but for which no correction request was received by the March 12, 2007 deadline, will not be changed at this stage for inclusion in the wage index. Each correction request must include all information and supporting documentation needed for CMS and the FI/MAC to determine whether or not the hospital’s request meets the criteria for a correction to their data at this point in the wage index development. The FI/MACs and DAC will review each request upon receipt and consult to determine whether or not the request qualifies for correction of the final wage and occupational mix data. |
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August 1, 2007 |
Approximate date for publication of the FY 2008 final rule; wage index includes final wage index data corrections. |
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October 1, 2007 |
Effective date of FY 2008 wage index. |