Survey of Contract Labor in Selected Health Industries

DEPARTMENT OF HEALTH & HUMAN SERVICES CENTERS FOR MEDICARE & MEDICAID SERVICES

[DATE]

[FIRST NAME] [LASTNAME]

[ADDR1]

[ADDR2]

[CITY], [STATE] [ZIP]

[NATIONAL PROVIDER IDENTIFICATION NUMBER]

Dear Provider Name Here,

The Centers for Medicare & Medicaid Services (CMS) is asking for your help to further increase the accuracy of Medicare payments to hospitals. We are conducting a brief and voluntary survey, the purpose of which is

to determine the proportion of professional services purchased by hospitals that are attributable to local firms and the proportion that come from national firms. (Purchased professional services include functions such

as accounting and auditing, management consulting, engineering, and legal services.)

This one-time only survey is being conducted on behalf of CMS by MacroSys Research and Technology and consists of only seven questions. All of your answers will be kept strictly confidential. The survey will

be conducted over a secure web-site and should take only a few minutes to complete. Again, your decision

to participate is completely voluntary and will not alter the payments you currently receive from Medicare.

As you know, under the prospective payment system (PPS), CMS pays for a wide variety of health care goods and services. CMS’ Office of the Actuary is responsible for constructing the industry-specific market baskets, or input price indexes, that are the foundations for the PPS updates. Part of that process includes an effort

to accurately determine the proportion of operating costs that are related to, influenced by, or vary with local labor markets (or the percentage of the PPS payment that is subject to a geographic adjustment). Your responses will be aggregated with other hospitals in your industry.

To participate in the survey, please have the person who is most knowledgeable in your institution regarding these costs visit our website at www.surveyslocationhere.com. We request that you respond by PutEndDateHere.

If you have any questions regarding the survey itself, please contact Kalle Culotta, who can be reached by phone at 202-955-6022 or be email at kalle.culotta@macrosysrt.com. If you have questions concerning the market baskets or the use of the reported information, please contact John Poisal at 410-786-6397

or John.Poisal@cms.hhs.gov.

Thank you for your contribution to improving the Medicare program!

Richard S. Foster, FSA

Chief Actuary

Centers for Medicare & Medicaid Services