(1) CMS current: IPPS hospital average wage survey (S-3) (2) CMS option—electronically submitted payroll data, dollars, and hours by SOC (3) BLS option—OES wage surveys
(2A)

All-Part A providers
(2B)

Hospital providers only
(3A)
All-employer average wages
(3B)

Hospital average wages
Calculation Relative wages are computed from facility-level data aggregated by MSA and state non-MSA Relative wages would be computed from facility-level data aggregated by MSA and state non-MSA, or could be aggregated to hospital-specific areas (e.g., nearest neighbor) Data are available by MSA and multiple “balance-of state” non-MSA areas; facility-specific data are not available
Occupation weights Added as adjustment to hospital-level average wage Fixed weight (Laspeyres type) based on submitted data by facility type Fixed weight (Laspeyres type) based on national employment shares by industry sector
Suggested “Scoring” on Specific Desirable Characteristics
Characteristics to consider and compare (1) CMS current: IPPS hospital average wage survey (S-3) (2) CMS option—electronically submitted payroll data, dollars, and hours by SOC (3)

BLS option—OES wage surveys
(2A)

All-Part A providers
(2B)

Hospital providers only
(3A)
All-employer average wages
(3B)

Hospital average wages
Timeliness 4-year lag from reported wage data to applied index Potentially as little as a 1-year lag if facilities submit payroll data at the end of the calendar year Data are from 3 to 5 years old when applied to index (due rolling sample method)
Volatility Data are unstable year to year due to large numbers of one- and two-hospital markets Likely to be improved over S-3 survey data, because more providers are contributing data to any given market Some improvement over S-3 if data are collected from all hospitals rather than IPPS only, but still suffers from small numbers within many markets Found to be less volatile in testing; likely due to rolling sample method and all-employer data The sample sizes for hospital-only respondents are likely to be too small for stability


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