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Hospital Notice: 07-010

Original Issue Date: October 08, 2007

FROM: Medicare Communications

SUBJECT: Availability of the Preliminary Federal Fiscal Year (FY) 2009 Wage Index Public Use Files (PUFs), Deadline for Requesting Revisions to the Preliminary FY 2009 Wage Index Data, and FY 2009 Wage Index Development Timetable

On Friday, October 5, 2007, the Centers for Medicare & Medicaid Services (CMS) is releasing the preliminary FY 2009 wage index PUFs.  Hospitals must review the files to confirm the inclusion and accuracy of their wage index data.  Hospitals may request revisions to their preliminary wage index data.  All requests from hospitals for changes to their FY 2009 wage index data must be submitted to and received by their fiscal intermediaries or Medicare Administrative Contractors (FIs/MACs)on or before December 7, 2007

Availability of Wage Index PUFs

CMS is releasing four preliminary PUFs on the Internet for the FY 2009 wage index: the Worksheet S-3 wage data PUF (which includes Worksheet S-3, Parts II and III wage data from cost reporting periods beginning on or after October l, 2004 through September 30, 2005; that is, FY 2005 wage data) and three occupational mix data PUFs (which include separate data files for the 1st quarter CY 2006 occupational mix data collection (that is, from January 1, 2006 through March 31, 2006), the 2nd quarter CY 2006 occupational mix data collection (that is, from April 1, 2006 through June 30, 2006), and the combined 6 months (1st and 2nd quarters) data collection). Both the 1st quarter and the 2nd quarter data collection periods are referred to as the “2006 occupational mix data”.

The files will be available at: http://www.cms.hhs.gov/AcuteInpatientPPS/WIFN/list.asp#TopOfPage.  Alternatively, the American Hospital Association generally makes the wage index files available to individual State hospital associations. The files include FY 2005 wage data for all hospitals in our database as of June 30, 2007 and 2006 occupational mix data submitted to CMS by June 8, 2007.   The files exclude hospitals designated as CAHs as of September 21, 2007.  The FY 2005 wage data and 2006 occupational mix data will be used in the development of the proposed FY 2009 wage index, to be published in the Federal Register in Spring, 2008.

All hospitals are required to verify the accuracy of their wage data, as this (that is, the December 7, 2007 deadline) will be hospitals’ last opportunity to initiate revisions to their data for the FY 2009 wage index.

Hospital Requests for Revisions to the Wage Index Data

As we noted above and in the attached timetable, hospitals may request revisions to their preliminary wage data and occupational mix data.  A hospital that wishes to revise its data must submit its request along with complete, appropriate, detailed supporting documentation to its FI/MAC no later than December 7, 2007.  Note that December 7 is the deadline for the FIs’/MACs’ receipt of revision requests from hospitals.  Requests postmarked by December 7, but not received until after December 7, are unacceptable.

Requirements for Requesting Revisions to Occupational Mix Data – – A hospital requesting revisions to its 1st quarter and/or 2nd quarter occupational mix survey data must copy its record(s) from the applicable CY 2006 occupational mix data PUFs posted on CMS’s web site (address provided above), highlight the revised cells on its spreadsheet, and submit its spreadsheet(s) and complete documentation supporting the change to its FI/MAC, to be received by the FI/MAC no later than December 7, 2007.

Related questions should be directed to:

Western Pennsylvania Locations: Jeffrey David
(412) 544-1876 
Bill Malichky
(412) 544-1853
Harrisburgh Locations: Brian Galbraith
717-302-4452 
Philadelphia Locations:  Patricia Bowman
215-654-5660
Timonium Locations: Blair Pence
410-427-8691 

 

 

 

 

 

 

 

 

 

Highmark Medicare Services
120 Fifth Avenue
Suite P5301

Pittsburgh, Pa. 15222

ATTACHMENT: FY 2009 Wage Index Development Timetable


FY 2009 Hospital Wage Index Development Timetable
(October 2007 through October 2008)

 

Date:

Task:

October 5, 2007

Release of four preliminary FY 2009 wage index files: 1) unaudited FY 2005 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), 3) 2nd quarter CY 2006 occupational mix survey data (that is, from April 1, 2006 through June 30, 2006), and 4) combined 6 months (1st and 2nd quarters) occupational mix survey data.  The FY 2005 wage data file includes Worksheet S-3 wage data from cost reports submitted to HCRIS through June 30, 2007.  The CY 2006 occupational mix files include survey data that hospitals submitted to their FIs/MACs by June 8, 2007.  The files exclude hospitals designated as CAHs as of September 21, 2007.

 

Notice sent from CMS to FIs/MACs regarding the December 7, 2007 deadline for hospitals to request revisions to the wage index data as reflected in the preliminary files.   Notice must be forwarded by the FIs/MACs to hospitals they service to alert hospitals to the availability of the preliminary wage data file for their review and to inform hospitals that this will be their final opportunity to request revisions.

December 7, 2007

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.   FIs/MACs must receive the revision requests and supporting documentation by this date.  FIs/MACs will have approximately 10 weeks to complete their reviews, make determinations, and transmit revised data to CMS’s Division of Acute Care (DAC).

February 13, 2008

Deadline for FIs/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. 

February 18, 2008

Deadline for FIs/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.

February 25, 2008

Release of revised FY 2009 wage index and occupational mix files as PUFs on the CMS web site.   These data will have been desk reviewed and verified by the FIs/MACs before being published.  Also, a file including each urban and rural area’s average hourly wages for the FYs 2008 (final) and 2009 (preliminary) wage indexes will be provided on the CMS web site. 

March 11, 2008

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).   FIs/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 FIs/MACs at this point, as it is too late in the process to handle data that is new to the FIs/MACs in a timely manner.

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.

April 14, 2008

Deadline for FIs/MACs to transmit final revised 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 revisions must be transmitted to DAC by this date.  FIs/MACs must also send written notification to hospitals regarding the hospitals’ March 10, 2008 correction/revision requests by this date.

April 21, 2008

Deadline for hospitals to appeal FI/MAC determinations and request CMS’ intervention in cases where the hospital disagrees with the FI’s/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 FIs/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.

Late April

Final FY 2009 wage index data compiled and sent by CMS to FIs/MACs for verification. This verification of the final wage and occupational mix data by the FIs/MACs is necessary to ensure that the correct data for each hospital has been properly transmitted and received.   The FIs/MACs will have approximately one week in which to complete the verification.

 

Notice sent from CMS to each FI/MAC regarding the May 9, 2008 release of the final FY 2009 wage index data PUFs and the June 6, 2008 deadline for hospitals to request corrections to the wage and occupational mix data as reflected in the final files.   Notice must be forwarded by FIs/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 11, 2008 deadline, will not be considered for correction at this stage.

May 9, 2008

Release of final FY 2009 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.

June 9, 2008

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 FIs/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 11, 2008 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 FIs/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.

August 1, 2008

Approximate date for publication of the FY 2009 final rule; wage index includes final wage index data corrections.

October 1, 2008

Effective date of FY 2009 wage index.

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