Hospitals that submit wage index data have the opportunity to request geographic reclassification. For facilities that qualify, they can experience significant increases in both base Diagnosis-Related Group (“DRG”) and Outpatient Prospective Payment System (“OPPS”) payments.
Each hospital must qualify based on several factors, including but not limited to:
1) Type of facility (Sole Community Hospital, Rural Referral Center, etc.)
2) Distance from other locations
3) Three-year rolling average for wage index
Depending on the hospital’s metrics, it could optimize its wage index factor by geographically reclassifying.
Applications for FFY 2027 reclassifications are due to the Medicare Geographic Classification Review Board (“MGCRB”) by September 2, 2025. This is also the current deadline for cancelling a pervious withdrawal or termination.
Contact Us
At Blue & Co., we are able to help with identifying geographic reclassification opportunities, verifying payment impacts, and completion of the geographic submission process. If you need assistance with determining whether your hospital qualifies or with filing a request by the deadline, please contact our experts.
Kyle Smith, CPA, 340B ACE, Director
Austin Fisher, CPA, Senior Manager
