Notice: This CMS-approved document has been submitted - Philips ...
Notice: This CMS-approved document has been submitted - Philips ... Notice: This CMS-approved document has been submitted - Philips ...
CMS-1403-FC wage index values, especially Puerto Rico, and to prevent sudden adverse effects to the payment system. We will continue to reassess the need for a wage index floor in future years. ii. Wage index Values for Areas With No Hospital Data In CY 2006, while adopting the CBSA designations, we identified a small number of ESRD facilities in both urban and rural geographic areas where there are no hospital wage data from which to calculate ESRD wage index values. The affected areas were rural Massachusetts, rural Puerto Rico, and the urban area of Hinesville, GA (CBSA 25980). For CY 2006, CY 2007, and CY 2008, we calculated the ESRD wage index values for those areas as follows: ● For rural Massachusetts, because we had not determined a reasonable wage proxy, we used the FY 2005 wage index value in CY 2006 and CY 2007. For CY 2008, we used an alternative methodology as explained below. ● For rural Puerto Rico, the situation was similar to rural Massachusetts. However, because all geographic areas in Puerto Rico were subject to the wage index floor in CY 2006, CY 2007, and CY 2008, we applied the ESRD wage index floor to rural Puerto Rico as well. ● For the urban area of Hinesville, GA, we calculated the CY 2006, CY 2007, and CY 2008 wage index value based on 184
CMS-1403-FC the average wage index value for all urban areas within the State of Georgia. For CY 2008, we adopted an alternative methodology for establishing a wage index value for rural Massachusetts. Because we used the same wage index value for 2 years with no update, we believed it was appropriate to establish a methodology which employed reasonable proxy data for rural areas (including rural Massachusetts), and also permitted annual updates to the wage index based on that proxy data. For rural areas without hospital wage data, we used the average wage index values from all contiguous CBSAs as a reasonable proxy for that rural area. In determining the imputed rural wage index, we interpreted the term “contiguous” to mean sharing a border. In the case of Massachusetts, the entire rural area consists of Dukes and Nantucket Counties. We determined that the borders of Dukes and Nantucket counties are contiguous with Barnstable and Bristol counties. We will continue to use the same methodology for CY 2009. Under this methodology, the CY 2009 wage index values for the counties of Barnstable (CBSA 12700, Barnstable Town, MA— 1.2643) and Bristol (CBSA 39300, Providence-New Bedford- Fall River, RI-MA—1.0696) were averaged resulting in an 185
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<strong>CMS</strong>-1403-FC<br />
the average wage index value for all urban areas within the<br />
State of Georgia.<br />
For CY 2008, we adopted an alternative methodology for<br />
establishing a wage index value for rural Massachusetts.<br />
Because we used the same wage index value for 2 years with<br />
no update, we believed it was appropriate to establish a<br />
methodology which employed reasonable proxy data for rural<br />
areas (including rural Massachusetts), and also permitted<br />
annual updates to the wage index based on that proxy data.<br />
For rural areas without hospital wage data, we used the<br />
average wage index values from all contiguous CBSAs as a<br />
reasonable proxy for that rural area.<br />
In determining the imputed rural wage index, we<br />
interpreted the term “contiguous” to mean sharing a border.<br />
In the case of Massachusetts, the entire rural area<br />
consists of Dukes and Nantucket Counties. We determined<br />
that the borders of Dukes and Nantucket counties are<br />
contiguous with Barnstable and Bristol counties. We will<br />
continue to use the same methodology for CY 2009. Under<br />
this methodology, the CY 2009 wage index values for the<br />
counties of Barnstable (CBSA 12700, Barnstable Town, MA—<br />
1.2643) and Bristol (CBSA 39300, Providence-New Bedford-<br />
Fall River, RI-MA—1.0696) were averaged resulting in an<br />
185