T. Giovanis & Company has pursued a wide variety of engagements on behalf of clients in the following areas:




T. Giovanis & Company, LLC
Health Policy and
Regulatory Consultants

PO Box 130
Highland, Maryland 20777
Telephone: 301.854.2496
Facsimile: 301.854.2248
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Area Wage Index/Data

Area Wage IndexArea Wage Index (AWI) Data Reviews and Analyses

Why is the Medicare area wage index (AWI) data important to hospitals and other Medicare providers?

The AWI is a critical adjustment in Medicare’s prospective payment system formulas, which generally affects 70.0% of the payment. These wage data are used to make Medicare payments for acute care hospitals as well as other providers of services to Medicare beneficiaries.  When hospitals file their Medicare cost report they must include wage data in that report. However, hospitals are normally rushed during this time and do not report data of sufficient quality to develop payments at the appropriate level.

How does the T. Giovanis & Company AWI review process work?

Annually, hospitals have an opportunity to review and correct the hospital “as filed” wage data used in calculating the AWI. Our program reviews hospital reported wage data in comparison with the hospital’s prior year data, as well as the other hospitals in the labor market. This evolves into targeted questions for hospitals to investigate and respond. Often times, there are site visits to select labor market hospitals in order to develop the answers to the questions posed, interrogate the responses provided, and review other aspects of hospital operations which may impact the wage data such as the structure of various hospital benefit programs.

What are the results of the T. Giovanis & Company AWI process?

Our process identifies areas for which changes can be developed and submitted to the Medicare Administrative Contractor. This process generally results in improved quality wage data and also fosters improved quality for the initial reporting of wage data for subsequent periods.  This avoids having to make changes to the data for future periods and yields a better result. The result is generally an increase in Medicare payments for hospitals and on some occasions results in the identification of special adjustment ideas that can be pursued separately.