NOTICES

DEPARTMENT OF
PUBLIC WELFARE

Inpatient Hospital Services

[37 Pa.B. 6969]
[Saturday, December 29, 2007]

Purpose of Notice

   The purpose of this notice is to provide final notice of the Department of Public Welfare's (Department) intent to revise its payment method for inpatient hospital services effective on or after January 1, 2008. These revisions will affect acute care general hospitals, private psychiatric hospitals, psychiatric units of general hospitals, rehabilitation hospitals and rehabilitation units of general hospitals.

   The Department and representatives of the hospital industry have met extensively to negotiate the terms of a Hospital Rate Agreement. Based on these negotiations, the Department proposes to change its payment methodology for inpatient services in the following manner.

Base Payment Rates

   Effective January 1, 2008, the Department will increase each hospital's or hospital unit's base payment rate for inpatient services provided on a fee-for-service basis by 2%.

Inpatient Disproportionate Share; Outpatient Disproportionate Share; and Direct Medical Education Payments

   Effective January 1, 2008, the Department intends to increase Inpatient Disproportionate Share payments by 2%, with no change in the current methodology for determining eligibility for those payments. For Fiscal Year (FY) 2007-2008, the aggregate amount of Inpatient Disproportionate Share payments is to be limited to $78.203 million in total funds.

   Effective January 1, 2008, the Department intends to increase Outpatient Disproportionate Share payments by 2%, with no change in the current methodology for determining eligibility for those payments. For FY 2007-2008, the aggregate amount of Outpatient Disproportionate Share payments is to be limited to $64.39 million in total funds.

   Effective January 1, 2008, the Department intends to increase Medical Education payments by 2%, with no change in the current methodology for determining eligibility for those payments. For FY 2007-2008, the aggregate amount of Medical Education payments is to be limited to $83.249 million in total funds.

Fiscal Impact

   The fiscal impact of the increase in the base payment rates is estimated at $5.778 million ($2.775 million in State funds) for FY 2007-2008 and $18.011 million ($8.605 million in State funds) for FY 2008-2009. The fiscal impact of the increases to the pass-through payments is estimated at $1.429 million ($0.656 million in State funds) in FY 2007-2008 and $6.861 million ($3.127 in State funds) for FY 2008-2009.

Public Comment

   Interested persons are invited to submit written comments regarding this notice at 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. Comments received within 30 days will be reviewed and considered for any subsequent revision of the notice.

   Persons with a disability who require an auxiliary aid or service should submit comments using the AT&T Relay Service at (800) 654-5984 (TDD users) or (800) 654-5988 (voice users).

ESTELLE B. RICHMAN,   
Secretary

   Fiscal Note: 14-NOT-537. (1) General Fund;

	Estimate for:	MA-Inpatient	MA-Outpatient
(2)	Implementing Year 2007-08 is	$ 3,285,000	$146,000
(3)	1st Succeeding Year 2008-09 is	$11,002,000	$730,000
	2nd Succeeding Year 2009-10 is	$11,002,000	$730,000
	3rd Succeeding Year 2010-11 is	$11,002,000	$730,000
	4th Succeeding Year 2011-12 is	$11,002,000	$730,000
	5th Succeeding Year 2012-13 is	$11,002,000	$730,000
		MA-Inpatient	MA-Outpatient
(4)	2006-07 Program--	$513,020,000	$671,472,000
	2005-06 Program--	$474,693,000	$945,950,000
	2004-05 Program--	$531,785,000	$842,991,000

   (7)  Medical Assistance (MA)--Inpatient; and Medical Assistance (MA)--Outpatient; (8) recommends adoption. Funds have been included in the budget to cover these increases.

[Pa.B. Doc. No. 07-2415. Filed for public inspection December 28, 2007, 9:00 a.m.]

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