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PA Bulletin, Doc. No. 03-1272

NOTICES

Payments to Inpatient Hospitals

[33 Pa.B. 3084]

   The purpose of this announcement is to provide advance public notice of the Department of Public Welfare's (Department) intent to revise its payment methods for inpatient hospital services. Effective July 1, 2003, the Department proposes to discontinue Direct Medical Education, Community Access Fund and Outpatient Disproportionate Share payments to hospitals. This change in policy would affect inpatient acute care general hospitals, private psychiatric hospitals, psychiatric units of acute care general hospitals, rehabilitation hospitals and rehabilitation units of acute care general hospitals.

   These payments are separate from and in addition to the payments made to hospitals for inpatient hospital services provided to Medical Assistance recipients and are not otherwise required to be made under State or Federal law. The proposed elimination of these discretionary payments is attributable to the lack of available funds in the General Appropriations Act of 2004 as passed by the General Assembly in March 2003. The Department, at the direction of Governor Rendell, and unlike many states which have proposed to address budget deficits and revenue shortfalls by essentially eliminating basic healthcare coverage for many of their poorest citizens, did not abandon this Commonwealth's most vulnerable citizens in developing the Department's Fiscal Year (FY) 2004 budget. Consequently, given the Governor's directive and the obligation to achieve a balanced budget, the Department proposes to eliminate these discretionary payments.

Fiscal Impact

   It is anticipated that this revision will result in a savings of $195.654 million in total funds ($104.263 million in Federal funds, $91.391 million in State funds) for FY 2003-04.

Public Comment

   Interested persons are invited to submit written comments about the proposed elimination of payments to the Department within 30 days of publication of this notice in the Pennsylvania Bulletin. Comments should be sent to the Department of Public Welfare, Office of Medical Assistance Programs, c/o Deputy Secretary's Office, Attention: Regulations Coordinator, Room 515, Health and Welfare Building, Harrisburg, PA 17120.

   Persons with a disability may use the AT&T Relay Service by calling (800) 654-5984 (TDD users) or (800) 654-5988 (voice users).

ESTELLE B. RICHMAN,   
Secretary

   Fiscal Note:  14-NOT-362. No fiscal impact; (8) recommends adoption. This revision will result in savings in Fiscal Year 2003-2004 of $63.5 million to the Medical Assistance--Inpatient appropriation and $28.1 million to the Medical Assistance--Outpatient appropriation.

[Pa.B. Doc. No. 03-1272. Filed for public inspection June 27, 2003, 9:00 a.m.]


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