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PA Bulletin, Doc. No. 04-217



Inpatient Hospital Services

[34 Pa.B. 758]

   The purpose of this announcement is to provide final notice of the Department of Public Welfare's (Department) payment methods for inpatient hospital services. This notice affects 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.

   The Department published a notice at 33 Pa.B. 3084 (June 28, 2003) that provided advance public notice of the Department's proposal to discontinue Direct Medical Education payments and Community Access and Outpatient Disproportionate Share payments to 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. This proposal to eliminate these discretionary payments was 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 received numerous comments from consumers and the hospital community concerning the elimination of these discretionary payments. The General Assembly now has made funds available in the General Appropriation Fund of 2004 that will allow the Department to continue these discretionary payments to hospitals.

Fiscal Impact

   It is anticipated that this revision will result in expenditures of $192.199 million in total funds ($106.434 million in Federal funds, $85.765 million in State funds) for FY 2003-04.

Public Comment

   A copy of this notice is available for review at local county assistance offices. Interested persons are invited to submit written comments to this notice. 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).


   Fiscal Note:  14-NOT-380. (1) General Fund;

Inpatient Outpatient
   (2)  Implementing Year 2003-04 is $62,170,000 $25,595,000;
   (3)  1st Succeeding Year 2004-05 is $62,930,000 $28,029,000;
         2nd Succeeding Year 2005-06 is $63,991,000 $28,898,000;
         3rd Succeeding Year 2006-07 is $65,095,000 $29,794,000;
         4th Succeeding Year 2007-08 is $66,233,000 $30,717,000;
         5th Succeeding Year 2008-09 is $67,406,000 $31,670,000;
Inpatient Outpatient
   (4)  2002-03 Program-- $406,835,000 $668,052,000;
         2001-02 Program-- $417,335,000 $704,041,000;
         2000-01 Program-- $418,428,000 $668,649,000;

   (7)  MA--Inpatient and MA--Outpatient; (8) recommends adoption. This regulatory action announces the reinstatement of the Direct Medical Education, Community Access Funds and Outpatient Disproportionate Share payments to hospitals. Funds for these payments have been included in Act 9-A of 2003, The First Supplemental General Appropriation Act of 2003.

[Pa.B. Doc. No. 04-217. Filed for public inspection February 6, 2004, 9:00 a.m.]

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