Using Table 7-1 as a guide, calculate the hospital payment rate for DRG 371 Cesarean without CC with a relative weight of .6221 for a hospital in New York City with a local wage index of 1.3595.

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TABLE 7-1 Example of Inpatient PPS Reimbursement* DRG 106 CORONARY BYPASS WITH PTCA National unadjusted labor payment Wage index: Atlanta, GA Wage-adjusted labor payment National nonlabor payment Total adjusted payment for a relative weight of 1 DRG 106 relative weight Total PPS payment for DRG 106 HOSPITAL: ATLANTA, GA $2,823.63 X.9960 = $2,812.34 +1.730.62 = $4,542.96 X 7.3062 $33,191.74 *The current labor payment rate is $2,823.63, which is multiplied by the local wage Index for Atlanta, Georgia, of .9960 to calculate the adjusted labor payment rate. This amount is added to the nonlabor payment amount to derive the adjusted hospital rate. The adjusted hospital rate is an attempt by CMS to account for differences in costs due to geographic location. Finally, the adjusted hospital rate is multiplied by the DRG relative weight to determine the hospital payment for DRG 106. Once the adjusted hospital rate has been determined, it is relatively simple to analyze the payment for any number of DRGs by multiplying the appropriate DRG weight by the adjusted hospital rate to determine the total payment.