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PA Bulletin, Doc. No. 20-830

NOTICES

DEPARTMENT OF
HUMAN SERVICES

Statewide Quality Care Assessment Program for Fiscal Year 2020-2021

[50 Pa.B. 3182]
[Saturday, June 27, 2020]

 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) 2020-2021.

Background

 Article VIII-G of the Human Services Code (code)1 authorizes the Department of Human Services (Department) to implement the Statewide Quality Care Assessment Program beginning July 1, 2010, and ending June 30, 2023. Under Article VIII-G, the Department will impose a monetary assessment on all licensed hospitals in this Commonwealth other than certain exempt hospitals.2 See 62 P.S. §§ 801-G—816-G. For State FY 2020-2021 through 2022-2023, the code specifies that the assessment will equal 3.32% of the net inpatient revenue and 1.73% of the net outpatient revenue of the covered hospitals. See 62 P.S. § 803-G(b)(5). Assessment revenue is deposited in a restricted account. See P.S. § 805-G(a).

 The code allows the Secretary of the Department (Secretary) to adjust the assessment percentage for inpatient services and outpatient services. 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. See 62 P.S. § 803-G(c).

Proposed FY 2020-2021 Assessment Rate and Estimated Impact on Hospitals

 The Department anticipates a positive balance for FY 2019-2020 in the restricted account due to the availability of additional Federal funding. The Secretary is exercising her authority under the code to reduce the assessment percentage rate for FY 2020-2021. The Secretary is proposing to adjust the assessment percentage rate under the Statewide Quality Care Assessment Program to 3.05% of net inpatient revenue and 1.59% of the net outpatient 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 $925.165 million.

FY 2021-2022 and FY 2022-2023 Assessment Rate and Estimated Impact on Hospitals

 For FY 2021-2022 and FY 2022-2023, the assessment percentage rate under the Statewide Quality Care Assessment Program will return to 3.32% of the net inpatient revenue and 1.73% of the net outpatient revenue of the covered hospitals as established under the code. The Department estimates the annual aggregate assessment fees for the nonexempt hospitals for FY 2021-2022 and FY 2022-2023 to total $1,005.766 million.

Public Comment

 Interested persons are invited to submit written comments regarding this notice to the Department of Human Services, Office of Medical Assistance Programs, c/o Regulations Coordinator, Room 515, Health and Welfare Building, Harrisburg, PA 17120. The Department will review and consider comments received within 30 days in determining the final assessment percentage rate.

 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).

TERESA D. MILLER, 
Secretary

 Fiscal Note: 14-NOT-1397. (1) General Fund; (2) Implementing Year 2020-21 is $925,165,000; (3) 1st Succeeding Year 2021-22 through 3rd Succeeding Year 2023-24 are $1,005,000,000; 4th Succeeding Year 2024-25 through 5th Succeeding Year 2025-26 are $0; (4) 2018-19 Program—$334,085,000; 2017-18 Program—$342,544,000; 2016-17 Program—$477,690,000; (7) Medical Assistance—Fee-for-Service; (8) recommends adoption. Funds have been included in the budget as assessment revenue will be used to support Medical Assistance payments to hospitals for inpatient services.

[Pa.B. Doc. No. 20-830. Filed for public inspection June 26, 2020, 9:00 a.m.]

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1  Article VIII-G was added to the code 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), amended and extended by the act of December 28, 2015 (P.L. 500, No. 92), and re-enacted by the act of June 22, 2018 (P.L. 258, No. 40).

2  Under the code, 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) 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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