Geographic classification of hospitals: alternative labor market areas.
Date of Pub
Medicare hospital payments are adjusted to reflect variation in hospital wages across geographic areas by grouping hospitals
into labor market areas. By only recognizing the average wage in an area, Medicare encourages hospitals to contain costs.
Labor market area definitions have recently received renewed attention because of their impact on hospital payments. Alternative
labor market areas were evaluated using several criteria, including ability to explain wage variation and impact on payment
equity. Rural labor market areas can be improved using county population size; however, further research on urban labor market
areas is needed.
Catchment Area (Health) : Comparative Study : Data Collection : Geography : Hospitals, Rural/classification/economics/statistics
& numerical data : Hospitals, Urban/classification/economics/statistics & numerical data : Medicare Part A/economics/statistics
& numerical data : Personnel, Hospital/economics : Prospective Payment System/economics/standards : Rate Setting and Review/standards
: Salaries and Fringe Benefits/legislation & jurisprudence/statistics & numerical data : United States