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Geographic Adjustment in Medicare Payment Phase I: Improving Accuracy (2012) / Chapter Skim
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Appendix D: Statistical Reliability of the Bureau of Labor Statistics (BLS) Wage Data
Pages 173-178

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From page 173...
... of total hospital employment nationally, according to the May 2009 Occupational Employment Statistics national employment estimates for hospitals from the BLS website. The occupations' shares in employment in the three occupations combined are: • Registered nurses: 56 percent; • Nursing aides, orderlies, and attendants: 15 percent; and • Office and administrative support occupations: 29 percent.
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From page 174...
... RTI's analysis likely overstates the RSEs of single statewide nonmetropolitan areas. CALCULATION OF RSE FOR EACH AREA The RSE for each area was calculated according to the following derivation: NOTATION: Let a1, a2, and a3 be the weights of the components in the index, where component 1 is registered nurses; component 2 is nursing aides; and component 3 is administrative support occupations.
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From page 175...
... Table D-2 shows the distribution of metropolitan and nonmetropolitan areas by ranges of simulated reliabilities in the weighted-average wage of the three common hospital occupations. A reliability of 90 percent means that 90 percent of the measured wage variation among areas is due to real wage differences among areas rather than sampling variation.
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From page 176...
... Wage of Three Common Hospital Occupations Metropolitan Areas Nonmetropolitan Areas % of % of % of % of Reliability (%) Number Areas Employment Number Areas Employment Total 400 100 100 172 100 100 >90 to 100 362 90.5 98.9 153 89 94 >80 to 90 11 2.8 0.7 9 5.2 2.1 >70 to 80 4 1 0.3 3 1.7 1.7 >50 to 70 0 0 0 3 1.7 2.1 0 to 50 2 0.5 0.1 0 0 0 Missing data 21 5.3 NA 4 2.3 NA NA = not available.
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From page 177...
... 177 APPENDIX D reliability of estimated wages include consolidating them with adjacent areas; increasing the proportion of sampled employers who respond to the BLS Occupational Employment Statistics survey; increasing the number of employers surveyed by BLS; and adding more years of data. For example, where nonmetropolitan wage data are less reliable, multiple sub-state nonmetropolitan areas could be consolidated into a single statewide nonmetropolitan area.
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Key Terms

  • hospital occupations
  • wage data
  • labor statistics
  • common hospital
  • employment statistics

  • administrative support
  • occupational employment
  • alabama nonmetropolitan
  • relative standard
  • bls wage

  • statewide nonmetropolitan
  • single statewide
  • standard errors
  • nonmetropolitan employment
  • national employment

  • selected occupations
  • statistics data
  • weighted average
  • data reported
  • bls website

  • bls reported
  • statistics website
  • registered nurses
  • rti computations
  • leaving data

  • total hospital
  • employment weights
  • hospital employment
  • standard error
  • support occupations


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