House Journal: Page 1691: Tuesday, May 1, 2001
23 hospital-based nursing facilities, state-operated
24 nursing facilities, and special population nursing
25 facilities.
26 b. It is the intent of the general assembly that
27 increases in payments to nursing facilities under the
28 case-mix adjusted component shall be used for the
29 provision of direct care. The department shall
30 compile and provide a detailed analysis to demonstrate
31 growth of direct care costs, increased acuity, and
32 care needs of residents. The department shall also
33 provide analysis of cost reports submitted by
34 providers and the resulting desk review and field
35 audit adjustments to reclassify and amend provider
36 cost and statistical data. The results of these
37 analyses shall be submitted to the general assembly
38 for evaluation to determine payment levels following
39 the transition funding period.
40 5. As used in this section:
41 a. "Case-mix" means a measure of the intensity of
42 care and services used by similar residents in a
43 facility.
44 b. "Case-mix adjusted costs" means specified costs
45 adjusted for acuity by the case-mix index. Costs
46 subject to adjustment are the salaries and benefits of
47 registered nurses, licensed practical nurses,
48 certified nursing assistants, rehabilitation nurses,
49 and contracted nursing services.
50 c. "Case-mix index" means a numeric score within a
Page 5
1 specific range that identifies the relative resources
2 used by similar residents and represents the average
3 resource consumption across a population or sample.
4 d. "Facilitywide average case-mix index" is a
5 simple average, carried to four decimal places, of all
6 resident case-mix indices based on the last day of
7 each calendar quarter.
8 e. "Geographic wage index" means an annual
9 calculation of the average difference between the Iowa
10 hospital-based rural wage index and Iowa hospital-
11 based standard metropolitan statistical area wage
12 indices as published by HCFA each July. The wage
13 factor shall be revised when the skilled nursing
14 facility wage indices are released by HCFA.
15 f. "HCFA" means the health care financing
16 administration of the United States department of
17 health and human services.
18 g. "HCFA/SNF index" means the HCFA total skilled
19 nursing facility market basket index published by data
20 resources, inc. The HCFA/SNF index listed in the
21 latest available quarterly publication prior to the

© 2001 Cornell College and
League of Women Voters of Iowa
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