Attachment_1_-_Computation_of_Basic_MS-DRG_1.pdf

Attachment 1 –RFPP05081500001 Computation of Basic MS-DRG Payments (i.e., Operating Federal Rate)

CBSA 32820 – Memphis, TN-MS-AR

Calculation of the Operating Federal Rate:

Step 1: Select the applicable average standardized amount for the full update

Step 2: Multiply the labor-related portion of the standardized amount by the applicable wage index for the geographic area

Step 3: For hospitals in Alaska and Hawaii, multiply the nonlabor-related portion of the standardized amount by the applicable cost-of-living adjustment factor

Step 4: Add the amount from Step 2 and the nonlabor-related portion of the standardized amount (adjusted, if applicable, under Step 3)

Step 5: Multiply the final amount from Step 4 by the relative weight corresponding to the applicable MS-DRG

Index Figures: Obtained from the Centers for Medicare & Medicaid Services, bopfor discharges on/after October 1, 2015.

Table 1B, National Adjusted Operating Standardized Amount:

Labor-related: $3,389.78 Non-labor-related: $2,077.61

Table 3, Wage Index Table by CBSA (32820, Memphis, TN, MS. AR): 0.8691

Table, Cost of Living Adjustment Factor: Not applicable

Table 5, MS-DRG Relative Weight (MS-DRG 76, Viral Meningitis w/o CC/MCC): 0.8302

Application for MS-DRG 076 (example):

Step 1: $3,389.78 Step 2: $3,389.78 X 0.8691 = $2,946.06 Step 3: Not applicable Step 4: $2,946.06 + $2,077.61 = $5,023.67 Step 5: $5,023.67 X 0.8302 = $4,170.65

Payment for MS-DRG 076 under the contract would be $4,170.65 plus or minus any premium or discount established as the contract rate.