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PA Bulletin, Doc. No. 10-2328

NOTICES

DEPARTMENT OF
PUBLIC WELFARE

Statewide Quality Care Assessment Program for Fiscal Year 2010-2011

[40 Pa.B. 6987]
[Saturday, December 4, 2010]

 This notice announces a proposed adjustment to the assessment percentage and the estimated aggregate impact on hospitals subject to the assessment under the Statewide Quality Care Assessment Program for Fiscal Year (FY) 2010-2011.

Background

 Article VIII-G of the Public Welfare Code (Law)1 authorizes the Department of Public Welfare (Department) to implement the Statewide Quality Care Assessment Program for the 3-year period beginning July 1, 2010, and ending June 30, 2013. Under the Law, the Department will impose a monetary assessment on all licensed hospitals in the Commonwealth other than certain exempt hospitals.2 See 62 P. S. §§ 801-G—816-G. For State FY 2010-2011, the Law specifies that the assessment will equal 2.69% of the net inpatient revenue of the covered hospitals. See 62 P. S. § 803-G(b)(1).

 On October 22, 2010, the General Assembly enacted Act 2010-84 (P. L. ____ , No. 84), which, among other things, amended section 803-G of Law to authorize the Secretary of the Department (Secretary) to adjust the assessment percentage for FY 2010-2011. Before adjusting the assessment percentage, the Secretary must publish a notice in the Pennsylvania Bulletin that specifies the proposed assessment percentage and identifies the aggregate impact on covered hospitals subject to the assessment and allow interested parties a 30-day period in which to comment. After consideration of any comments received during the 30-day period, the Secretary must publish a second notice announcing the assessment percentage. An adjustment to the assessment percentage must also be approved by the Governor. See 62 P. S. § 803-G(c).

Proposed Assessment Rate and Estimated Impact on Hospitals

 This notice provides the proposed adjusted assessment amount for FY 2010-2011 and the estimated fiscal impact of this adjustment on hospitals. For FY 2010-2011, the Department is proposing to adjust the assessment percentage rate under the Statewide Quality Care Assessment Program to 2.95% of net inpatient revenue of the covered hospitals. The Department estimates that if this proposed assessment rate is implemented, the annual aggregate assessment fees for the nonexempt hospitals will total $547.050 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 updates to the Department's Fee-for-Service inpatient hospital Diagnosis Related Group prospective payment system and changes to the hospital disproportionate share hospital and supplemental payments as announced at 40 Pa.B. 3620 (June 26, 2010) and 40 Pa.B. 5536 (September 25, 2010).

Public Comment

 Interested persons are invited to submit written comments regarding this notice to the Department of Public Welfare, Office of Medical Assistance Programs, c/o 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 may submit comments using the Pennsylvania AT&T Relay Service at (800) 654-5984 (TDD users) or (800) 654-5988 (voice users).

MICHAEL P. NARDONE, 
Acting Secretary

 Fiscal Note: 14-NOT-672. No fiscal impact; (8) recommends adoption.

[Pa.B. Doc. No. 10-2328. Filed for public inspection December 3, 2010, 9:00 a.m.]

_______

1  Article VIII-G was added to the Public Welfare Code by the act of July 9, 2010 (P. L. 336, No. 49).

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; and (6) Long-term acute care hospitals. 62 P. S. § 801-G.


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