Medicare Wage Index Change Proves Popular Among State Industry Leaders

A recent rule change to the Medicare wage index — which determines Medicare reimbursement to hospitals — is receiving strong praise from state industry leaders, the Kingsport Times-News reports. The wage index update intends to balance out pay differentials between hospitals in areas that have higher pay and hospitals in areas with lower compensation for medical professionals, particularly in smaller communities. U.S. Sen. Lamar Alexander, R-Tenn., lauded the change in the Senate Tuesday as a major step to curbing rural hospital closures, citing Ballad Health’s recent pay increase for its nurses as a success story of the wage index update.

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