Statewide Quality Care Assessment Program for Fiscal Years 2015-2016 through 2017-2018
[46 Pa.B. 1290]
[Saturday, March 5, 2016]
This notice announces an adjustment to the assessment percentage and the estimated aggregate impact on hospitals subject to the assessment under the Statewide Quality Care Assessment Program (Program) for Fiscal Years (FY) 2015-2016 through 2017-2018, as well as the creation of an additional class of hospital that is exempt from paying the monetary assessment.
Article VIII-G of the Human Services Code (law),1 authorizes the Department of Human Services (Department) to implement the Program beginning July 1, 2010. Under the law, the Department imposes a monetary assessment on all licensed hospitals in this Commonwealth other than certain exempt hospitals.2 See 62 P. S. §§ 801-G—816-G.
Adjusted Assessment Rate and Estimated Impact on Hospitals
The act of December 28, 2015 (P. L. 500, No. 92) (Act 92) amended the law. Act 92 added several new provisions to the law, amended the list of hospitals exempt from paying the monetary assessment to include certain cancer hospitals and provided that the assessment percentage rate under the Program was adjusted to 3.71% of net inpatient revenue of the covered hospitals beginningState FY 2015-2016 and continuing through FY 2017-2018. The Department estimates that by adjusting the assessment rate the annual aggregate assessment fees for the nonexempt hospitals will total $762.943 million. Subject to conditions specified in 62 P. S. § 813-G, the Department intends to use the revenue derived from this assessment, together with the related Federal matching funds, to make medical assistance payment to hospitals in accordance with 62 P. S. § 443.1(1.1) and as otherwise specified in the Commonwealth's approved Title XIX State Plan, make adjusted capitation payment to medical assistance managed care organizations for additional payments for inpatient hospital services in accordance with 62 P. S. § 443.1(1.4), and for any other purpose approved by the Secretary for inpatient hospital, outpatient hospital and hospital-related services.
Fiscal Note: 14-NOT-994. (1) General Fund; (2) Implementing Year 2015-16 is -$762,943,000; (3) 1st Succeeding Year 2016-17 through 2nd Succeeding Year 2017-18 are -$791,109,000; 3rd Succeeding Year 2018-19 through 5th Succeeding Year 2020-21 are $0; (4) 2014-15 Program—$564,772,000; 2013-14 Program—$428,041,000; 2012-13 Program—$718,947,000; (7) Medical Assistance—Fee-for-Service; (8) recommends adoption. Funds have been included in the budget to cover this increase.
[Pa.B. Doc. No. 16-386. Filed for public inspection March 4, 2016, 9:00 a.m.]
1 Article VIII-G was added to the law by the act of July 9, 2010 (P. L. 336, No. 49), re-enacted by the act of July 9, 2013 (P. L. 369, No. 55) and amended by Act 92. Among other things, Act 92 changed the name of the Public Welfare Code to the Human Services Code.
2 Under the law, the following hospitals are exempt from the assessment: (1) Federal veterans' affairs hospitals; (2) hospitals that provide care, including inpatient hospital services, to all patients free of charge; (3) private psychiatric hospitals; (4) State-owned psychiatric hospitals; (5) critical access hospitals; (6) long-term acute care hospitals; and (7) added by Act 92, free-standing acute care hospitals organized primarily for the treatment of and research on cancer in which at least 30436000f the inpatient admissions had cancer as the principal diagnosis based on Pennsylvania Health Care Cost Containment Council calendar year 2014 inpatient discharge data. 62 P. S. § 801-G.
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