Hospitals Urged to Review Data Used in FY 2018 Inpatient Rate Update

Posted on September 08, 2017

The Medical Services Administration (MSA) recently released hospital-specific wage index and cost data for review. The MSA will use the wage index data to update Medicaid inpatient base operating rates for fiscal year (FY) 2018.  

Effective Oct. 1, 2015, the agency implemented a statewide rate methodology, with one inpatient base rate for prospective payment system hospitals and another for critical access hospitals. It also adopted the use of all-patient-refined diagnosis-related groups (APR-DRGs) effective Oct. 1, 2015. On an annual basis, the MSA updates the statewide rates to incorporate updated wage index values, as well as the hospital cost ratios that are used for calculating outlier payments for qualifying cases.

In early August, the MSA distributed preliminary hospital capital rate information based on cost reports ending during FY 2016 and allowed hospitals to submit corrections through Sept. 1. Both the updated base and capital rates will take effect for discharges on and after Oct. 1, 2017. In addition, the MSA will update the APR-DRG relative weights following release of the new grouper software.

Featured in the MHA Monday Report. Click to view the full edition.The MHA encourages hospitals to review their wage index and cost data and notify the MSA by Sept. 20 if any data corrections are needed. Members with questions should contact Vickie Kunz at the MHA. 

Tags: Medicaid, MSA, wage index, Capital Rate Information Revisions

Posted in: Member News

MHA Updates Delivered to You

Subscribe to the MHA Monday Report weekly newsletter or our podcast, the MiCare Champion Cast, to keep informed about the latest healthcare news and events in Michigan.

MHA Monday Report
Contact us to subscribe

MiCare Champion Cast
iTunes | SoundCloud

Media Inquiries

Contact the MHA at
(517) 703-8601

Read the MHA policy on publication via MHA media.

MHA 100 Year Anniversary

Watch the video »