Medicare Equitable Payment Enhancement Act of 2001

Medicare Equitable Payment Enhancement Act of 2001 - Provides that, effective with respect to cost reporting periods beginning on or after October 1, 2002, in determining what proportion of the operating costs of inpatient hospital services are attributable to wages and wage-related costs, the Secretary of Health and Human Services shall exclude professional fees, postal services, and specified other labor intensive items.

Requires the Secretary, in updating the factor (established by the Secretary) reflecting the relative hospital wage level in the geographic area of a hospital compared to the national average hospital wage level under Medicare for a fiscal year, to use data from the cost reports beginning during the third fiscal year that precedes the fiscal year involved.