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<strong>CMS</strong>-1403-FC<br />

target amount of composite rate expenditures. When making<br />

this calculation, the ESRD wage index floor value of 0.7000<br />

is used whenever appropriate. The BN adjustment factor for<br />

the CY 2009 wage index is 1.056689. <strong>This</strong> figure differs<br />

slightly from the figure in the proposed rule (1.056672)<br />

because we have used updated hospital wage data and<br />

treatment counts from the most current claims data.<br />

To ensure BN, we also must apply the BN adjustment<br />

factor to the wage index floor of 0.7000 which results in a<br />

adjusted wage index floor of 0.7397 (0.7000 x 1.056689) for<br />

CY 2009.<br />

d. ESRD Wage Index Tables<br />

The 2009 wage index tables are located in Addenda G<br />

and H of this final rule with comment period.<br />

6. Application of the Hospital-Acquired Conditions Payment<br />

Policy for IPPS Hospitals to Other Settings<br />

Value-based purc<strong>has</strong>ing (VBP) ties payment to<br />

performance through the use of incentives based on measures<br />

of quality and cost of care. The implementation of VBP is<br />

rapidly transforming <strong>CMS</strong> from being a passive payer of<br />

claims to an active purc<strong>has</strong>er of higher quality, more<br />

efficient health care for Medicare beneficiaries. Our VBP<br />

initiatives include hospital pay for reporting (the<br />

Reporting Hospital Quality Data for the Annual Payment<br />

195

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