Geographic Reclassification: Procedures & Other Information
General Information
Prospective payment system (PPS) hospitals may apply to the Medicare Geographic Classification Review Board (MGCRB or Board) for reclassification to another area for WAGE INDEX and/or STANDARDIZED AMOUNT.
To be reclassified, providers must meet certain criteria identified in 42 CFR 412.230ff. PPS hospitals must also complete the application required by the MGCRB. The effective date is the Federal Fiscal Year (FFY) subsequent to the approval date (example: for an approval made October 1, 2003, the effective date will be October 1, 2004 through September 30, 2005). The application must be filed with the Board by the time and date specified in the letter issued to the hospital by the Fiscal Intermediary.
The applications can be requested from your WPS Home Office Audit Supervisor or downloaded from the CMS Internet Website at: http://www.cms.hhs.gov/MGCRB/02_instructions_and_applications.asp 
Providers need to be aware that these applications are very time sensitive. If CMS does not receive an application by the specified date and time, it will not be accepted. Therefore, providers are encouraged to submit their applications as early as possible to ensure they are received by CMS in a timely manner.
A hospital may apply for a wage index and/or standardized amount reclassification:
- from a rural area to an urban area
- from a rural area to another rural area
- from an urban area to another urban area
For more detailed information regarding this entire process and other ways to request reclassifications, visit the
CMS website at: http://www.cms.hhs.gov/MGCRB/02_instructions_and_applications.asp
For more information regarding this process, please contact the Audit Supervisor assigned to your provider. Refer to our Home Office Contacts Page or our Topics Contact Page.
Page Last Updated: Tuesday, 29-Dec-2009 13:35:56 CST
