HASC has once again partnered with Toyon Associates, Inc. to conduct the 2018 Medicare Wage Index Improvement Project (WIIP) for the Los Angeles area. Toyon estimates that the project has the potential to increase Medicare reimbursements by $18 million in Federal Fiscal Year 2020 by maintaining the Los Angeles Average Hourly Wage (AHW) above the rural California wage index (CA rural floor).

Toyon also estimates that 24 hospitals operating in Orange County and 15 hospitals in Riverside and San Bernardino counties also have the potential to receive additional Medicare reimbursements should the partnering agencies reach their goal to increase the Los Angeles AHW by $.50, which adds up to a significant improvement.

To achieve this goal, Toyon will conduct a detailed WIIP review at approximately 29 Los Angeles County hospitals pinpointed as having the best chance to appropriately increase the overall Los Angeles AHW. To finance the project, all L.A. hospitals reimbursed based on Medicare’s inpatient prospective payment system are asked to contribute a prorated share of the costs based on a hospital’s reported number of Medicare discharges. 

“We hope that, in the spirit of collaboration, all hospitals will participate in improving the AHW as an act that truly lifts all boats,” said Paul Young, HASC Senior VP for Reimbursement.

Contact:
Paul Young
HASC SVP Reimbursement Policy
(213) 538-0777
pyoung@hasc.org