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PA Bulletin, Doc. No. 11-120

NOTICES

Statewide Quality Care Assessment Program for Fiscal Year 2010-2011

[41 Pa.B. 565]
[Saturday, January 22, 2011]

 The Department of Public Welfare (Department) is providing final notice of the assessment percentage and the estimated aggregate impact on hospitals subject to the assessment under the Statewide Quality Care Assessment Program (Program) for Fiscal Year (FY) 2010-2011.

Background

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

 On October 22, 2010, the General Assembly enacted Act 2010-84 (P. L. ____ , No. 84), which, among other things, amended section 803-G of the code 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 allows 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 section 803-G(c) of the code.

 The Department published notice of its proposed adjustment to the assessment percentage and estimated aggregate impact on hospitals subject to the assessment under the Program for FY 2010-2011 at 40 Pa.B 6987 (December 4, 2010). The Department received no public comments during the 30-day comment period.

Assessment Percentage and Estimated Impact on Hospitals

 This notice provides the final adjusted assessment percentage for FY 2010-2011 and the estimated fiscal impact of this adjustment on hospitals. For FY 2010-2011, the Department is adjusting the assessment percentage rate under the Statewide Quality Care Assessment Program to 2.95% of net inpatient revenue of the covered hospitals. The Governor approved this adjustment to the assessment percentage.

 The Department estimates the annual aggregate assessment fees for the nonexempt hospitals will total $547.050 million. Subject to conditions specified in section 813-G of the code, (62 P. S. § 813-G), the Department intends to use revenue derived from this assessment, together with the related Federal matching funds, to make updates to the Department's Fee-for-Service inpatient acute care general hospital prospective payment system and changes to the hospital disproportionate share hospital and supplemental payments as specified in the Commonwealth's approved State Plan.

MICHAEL P. NARDONE, 
Acting Secretary

 Fiscal Note: 14-NOT-679. No fiscal impact; (8) recommends adoption.

[Pa.B. Doc. No. 11-120. Filed for public inspection January 21, 2011, 9:00 a.m.]

_______

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

2  Under section 801-G of the code (62 P. S. § 801-G), 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.


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