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Occupational Mix Survey – Importance of Payroll Decisions

The deadline for hospitals to submit the Occupational Mix Survey is June 30, 2026. 

The Centers for Medicare and Medicaid Services (CMS) collects this data every three years on the Occupational Mix of employees for each Inpatient Prospective Payment System (IPPS). Using the collected data, an Occupational Mix Adjustment Factor (OMAF) is calculated. The Occupational Mix adjustment affects the average hourly wage of each participating hospital. As a result, payroll decisions can have a significant impact on reimbursement.

Here are three payroll decisions that will make an impact on reimbursement:

  • Job Code Classification – Correctly applying the classification on the survey will give an accurate mix of your labor force. Misclassifying could hurt your wage index factor.
  • Contract Labor – OMS does not include wage-related costs, such as employee benefits. Therefore, contract labor reporting has a greater impact on the OMAF.
  • Pay Period Alignment – The OMS is unique compared to wage index reporting, as hospitals are required to report on the calendar year for OMS rather than the fiscal year for wage index.

The Occupational Mix adjustment helps to recognize regional differences in wage costs and skilled labor mix. Most rural hospitals do not have the same level of skilled labor mix that larger, more urban hospitals have. A higher skilled labor mix should result in a higher average hourly wage.

Contact Us

If your hospital needs assistance completing the survey or has any questions about the survey, please contact a Blue & Co. advisor. We have experts who work with providers from small rural to large health systems. Our experience with the Occupational Mix Survey and our extensive knowledge of the survey instructions ensure your survey is completed properly.

Kyle Smith, CPA, 340B ACE, Director 

Austin Fisher, CPA, Senior Manager

Jordan Rose, CPA, Senior Manager

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