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California Hospitals To Receive $51 Million In Increased Reimbursement From Wage Index Study Conducted By HFS Consultants

OAKLAND, Calif., Feb. 19, 2014 /PRNewswire/ -- HFS Consultants (HFS), a healthcare consulting company providing management, financial, operational, regulatory, and strategic planning consulting, announces that its recently completed 2013 California Rural Floor Wage Index Study achieved $51 million in estimated benefits. This benefit will impact Medicare reimbursement for the 166 PPS hospitals that expect to receive the rural floor wage index factor in FFY 2015.

The nine rural hospitals that comprise the rural California wage index were studied. In working with these nine rural hospitals, HFS identified Average Hourly Wage (AHW) findings that increased the rural California AHW by 61 cents. All 166 rural floor recipient hospitals in California will see their Wage Index Factors and Medicare reimbursement increase as a result of this study.

The 166 PPS hospitals that receive the rural floor wage index are located across California with the largest concentration in the Los Angeles, San Diego and Orange County areas. HFS has delivered this kind of improved reimbursement to its clients across the US, totaling more than $350 million in the last six years. In the last two years, the firm has generated an estimated $124 million to California rural floor hospitals alone.

"We're pleased we can help our clients accurately and compliantly report their AHW information and that this has such a wonderful financial benefit for hospitals across California," says Trahan Whitten, CEO of HFS Consultants.

HFS is a wage index subject matter expert and provides easy client access to its wage index expertise through a secure client portal,, which includes updates on changing wage index regulations, and instruction for accurate reporting of wage index information on the Medicare cost report. It also offers information on best practices for reporting salaries, hours, physician fees, contract labor, and wage related costs for wage index purposes.

About HFS Consultants
HFS Consultants, in business since 1991, offers a broad range of services focused on the needs of hospitals and other healthcare facilities for financial, strategic, clinical and management operations. It specializes in assisting healthcare facilities position themselves for organizational and competitive change and growth. Clients include: Adventist Health, Alameda Health System, Dignity Health, Hospital Association of Southern California, Natividad Medical Center, Children's Hospital & Research Center Oakland, Scottsdale (AZ) Healthcare, and St. Joseph Health.

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SOURCE HFS Consultants

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