Medicare Claims Processing Manual (Pub. 100-04), Ch. 4 § 10.8
Geographic Adjustments
10.8 - Geographic Adjustments
(Rev. 1, 10-03-03)
A-01-93
Adjustments for differences in wages across geographical areas are made using inpatient
hospital PPS wage index (post-reclassification, post-floor).
It is estimated that 60 percent of the group payment represents labor-related costs and are
subject to the geographic adjustment.