Hospice Wage Index Calculator

Formula

The formula to calculate the Hospice Wage Index (HWI) is:

\[ \text{HWI} = (\text{L} \times \text{WI}) + \text{NL} \]

Where:

HWI – The hospice wage index.
L – The hospice labor portion of the payment rate.
WI – The wage index for the geographic area.
NL – The hospice non-labor portion of the payment rate.

Definition

Hospice Wage Index (HWI): A factor used in the calculation of Medicare payments for hospice care, adjusting payment rates to reflect geographic differences in wage levels.
Hospice Labor Portion of Payment Rate (L): The portion of the payment rate allocated to labor costs.
Wage Index for Geographic Area (WI): The wage index specific to the geographic area.
Hospice Non-Labor Portion of Payment Rate (NL): The portion of the payment rate allocated to non-labor costs.

Example

Let's say the hospice labor portion of the payment rate (L) is $200, the wage index for the geographic area (WI) is 1.5, and the hospice non-labor portion of the payment rate (NL) is $100. Using the formula:

\[ \text{HWI} = (200 \times 1.5) + 100 = 400 \, \text{\$} \]

So, the hospice wage index is $400.