mrplunkey
New member
It's interesting what the media pick up on versus what they discard.
The real scandal in health care reimbursement is the wage index. It's a payment system that modifies 68% of the money given to hospitals (presumably the wage component) based supposedly on the relative labor rates of different geographies. Are those wage rates set by the Bureau of Labor Statistics? Nope -- they're based on the last two years of costs reported by the specific hospital.
So hospitals with a wage index greater than 1.0 have learned to run-up their costs to drive their wage indexes larger. And hospitals with lower wage indexes get driven out of business because they can't keep firing people as fast as the high index hospitals can run-up costs.
It's a system based on pay for non-performance -- our government at its finest.
The real scandal in health care reimbursement is the wage index. It's a payment system that modifies 68% of the money given to hospitals (presumably the wage component) based supposedly on the relative labor rates of different geographies. Are those wage rates set by the Bureau of Labor Statistics? Nope -- they're based on the last two years of costs reported by the specific hospital.
So hospitals with a wage index greater than 1.0 have learned to run-up their costs to drive their wage indexes larger. And hospitals with lower wage indexes get driven out of business because they can't keep firing people as fast as the high index hospitals can run-up costs.
It's a system based on pay for non-performance -- our government at its finest.