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All Posts Tagged Tag: ‘labor’

  • Input Pricing Under the Prospective Payment System (PPS)

    As discussed in a precious article about PPS, we discussed labor, nonlabor, and capital costs. The purpose of this brief discussion is to explain the elements in more detail, especially because of its interrelationship with the wage index computed on S-3, Part II and Part …

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  • Cost Outliers: A Brief Explanation of DRG Outliers (Part 1)

    Outlier payments are designed to compensate a facility for costs over and above normally expected costs. Remember that a DRG (diagnosis related group) payment is a reasonable estimate of what a single case (discharge) should cost. If a case becomes excessively expensive, then it makes …

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