Fair Competition for Hospitals Act of 2011 - Requires the wage index applying to a certain kind of subsection (d) hospital under title XVIII (Medicare) of the Social Security Act to be the highest wage index assigned to hospitals in the core-based statistical area in which the hospital is located (regardless of which state the hospital is located in) as a result of the requirement of the Balanced Budget Act of 1997 that the area wage index applicable to any hospital which is not located in a rural area be not less than the area wage index applicable to hospitals located in rural areas in the state in which the hospital is located.
(Generally, a subsection [d] hospital is an acute care hospital, particularly one that receives payments under Medicare's inpatient prospective payment system [IPPS] when providing covered inpatient services to eligible beneficiaries.)
Limits the application of this Act to a subsection (d) hospital: (1) located in a core-based statistical area comprising counties from more than one state, but (2) not located in a core-based statistical area in which one or more hospitals are subject to a specified minimum wage index, and (3) not located in a core-based statistical area in which the highest wage index applies to hospitals covered by this Act under a state Medicare reimbursement system.