DEPARTMENT OF
PUBLIC WELFAREHospital Services [35 Pa.B. 7058] The Department of Public Welfare (Department) intends to revise its payment method for hospital services effective on or after January 1, 2006. 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 hospital services as follows:
Base Payment Rates
Effective January 1, 2006, 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 2.0%.
Inpatient Disproportionate Share; Outpatient Disproportionate Share; and Direct Medical Education Payments
Effective January 1, 2006, the Department intends to increase Inpatient Disproportionate Share payments by 3.5%, with no change in the current methodology for determining eligibility for those payments. For Fiscal Year (FY) 2005-2006, the aggregate amount of Inpatient Disproportionate Share payments is to be limited to $73.19 million in total funds.
Effective January 1, 2006, the Department intends to increase Outpatient Disproportionate Share payments by 3.5%, with no change in the current methodology for determining eligibility for those payments. For FY 2005-2006, the aggregate amount of Outpatient Disproportionate Share payments is to be limited to $60.26 million in total funds.
Effective January 1, 2006, the Department intends to increase Medical Education payments by 3.5%, with no change in the current methodology for determining eligibility for those payments. For FY 2005-2006, the aggregate amount of Medical Education payments is to be limited to $77.915 million in total funds.
Fiscal Impact
This change will result in a cost of $7.482 million in total funds ($4.053 million in Federal funds, $3.429 million in State funds) for FY 2005-2006 and a cost of $25.221 million in total funds ($13.597 million in Federal funds, $11.624 million in State funds) for FY 2006-2007.
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 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 in determining the final payment rates and payment methodologies for inpatient hospital services.
Persons with a disability who require an auxiliary aid or service may 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-458. (1) General Fund;
Inpatient Outpatient (2) Implementing Year 2005-06 is $3,196,000 $233,000 (3) 1st Succeeding Year 2006-07 is $10,682,000 $942,000 2nd Succeeding Year 2007-08 is $10,682,000 $942,000 3rd Succeeding Year 2008-09 is $10,682,000 $942,000 4th Succeeding Year 2009-10 is $10,682,000 $942,000 5th Succeeding Year 2010-11 is $10,682,000 $942,000 Inpatient Outpatient (4) 2004-05 Program-- $531,785,000 $842,991,000 2003-04 Program-- $411,042,000 $727,979,000 2002-03 Program-- $407,104,000 $666,832,000
(7) Medical Assistance--Inpatient and Outpatient; (8) recommends adoption. Funds have been included in the Department's budget to cover this increase.
[Pa.B. Doc. No. 05-2409. Filed for public inspection December 30, 2005, 9:00 a.m.]
