The CMS underestimated hospital labor spending when making payment adjustments for the 2022 fiscal year, resulting in hospitals receiving only a 2.4% rate increase compared to a 6.5% increase in hospital labor rates, according to a report from group purchasing organization Premier, Healthcare Dive reports.
The agency’s estimates of hospital spending growth using historic data represented less than the actual growth in hospital labor rates, resulting in data “unlikely to reflect reality,” according to the GPO. That’s significant as labor costs account for nearly 68% of hospital costs in the CMS’ market basket calculation used to adjust hospital payments, Premier said. Read more.
