PDFWAC 296-23A-0440
How does the department calculate the base price for DRG hospitals, except major teaching hospitals?
The department calculates the base price for DRG hospitals, except major teaching hospitals by:
(1) Calculating each hospital's case-mix adjusted average cost per case;
(2) Weighting each hospital's case-mix adjusted average cost per case by the number of cases at that hospital;
(3) Determining the median (fiftieth percentile) of the list of case-mix adjusted average costs per case.