Rhode Island Hospitals Get $5.8M to Fix Pay Disparity

Four Rhode Island hospitals will receive a collective $5.8 million more in Medicare payments in the next fiscal year as a result of a CMS wage index adjustment accounting for different labor costs across the United States, state congressional representatives announced.

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Newport (R.I.) Hospital, Warwick, R.I.-based Kent Hospital, South County Hospital in Wakefield, R.I., and Westerly (R.I.) Hospital were previously reimbursed on a lower wage index than other hospitals in the state, resulting in significant pay disparities for hospitals in close proximity to each other.

Newport will receive about $968,000 more in Medicare reimbursement in fiscal year 2014 due to the wage index adjustment. Kent will get roughly $2.7 million, South County will receive an estimated $1.09 million and Westerly will get about $990,000 more in reimbursements.

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