312 Public notice of the Department's intent to establish a new class of disproportionate share payments

DEPARTMENT OF
PUBLIC WELFARE

Public Notice of the Department's Intent to Establish a New Class of Disproportionate Share Payments

[28 Pa.B. 1050]

   The purpose of this announcement is to provide prior public notice of the Department of Public Welfare's (Department) intent to establish a new class of disproportionate share payments effective March 1, 1998.

   The Department intends to make this payment, in addition to the classes of payment already provided under the Medical Assistance Program, to those hospitals which render uncompensated care and which the Department has determined are experiencing significant revenue loss as a result of Medical Assistance Program revisions under Act No. 1996-35.

   The Department intends to consider a hospital eligible for these payments if:

   *  based on the Department's determination of GA/MNO discontinued eligibility, the hospital's annual net patient revenue loss exceeds $3.2 million and the hospital received less than $1.8 million in annual direct medical education payments in fiscal year 1996-97; or

   *  based on the Department's determination of GA/MNO discontinued eligibility, the hospital's annual net patient revenue loss exceeds $3.2 million, the hospital received annual direct medical education payments of over $1.8 million in FY 1996-97 and the hospital's loss of total annual Medical Assistance revenue is less than 15%; or

   *  based on the Department's determination of GA/MNO discontinued eligibility, the hospital's annual net patient revenue loss exceeds $2.5 million with a percentage loss of net patient revenue exceeding 6%; or

   *  the hospital was eligible for disproportionate share as a rural hospital as defined under the Department's disproportionate share payment policy in calendar year 1997.

   The Department will allocate $10 million from the State General Fund for this additional class of disproportionate share payments. The payments will be made to qualifying hospitals based on their percentage of discontinued revenue to the total discontinued revenue of all qualifying hospitals. The payments to hospitals may not exceed the Commonwealth's aggregate annual disproportionate share allotment, and no hospital may receive disproportionate share payments in excess of its hospital-specific limit.

Fiscal Impact

   For Fiscal Year 1997-98, the fiscal impact as a result of the disproportionate share payment will be $21.45 million in total funds ($10 million in State General funds and $11.45 million in Federal funds).

Contact Person

   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 within 30 days of this publication. These 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 [phone] (TDD users) or [phone] (voice users). Persons who require an alternate format should contact Thomas Vracarich at [phone].

   FEATHER O. HOUSTOUN,   

   Secretary

   Fiscal Note:  14-Not-165. (1) General Fund; (2) Implementing Year 1997-98 is $10 million; (3) 1st Succeeding Year 1998-99 is $10 million; 2nd Succeeding Year 1990-00 is $10 million; 3rd Succeeding Year 2000-01 is $10million; 4th Succeeding Year 2001-02 is $10 million; 5th Succeeding Year 2002-03 is $10 million; (4) FY 1996-97 $437 million; FY 1995-96 $452 million; FY 1994-95 $552 million; (7) Medical Assistance--Inpatient; (8) recommends adoption. The increased cost for this revision is included in the Department's budget.

[Pa.B. Doc. No. 98-312. Filed for public inspection February 20, 1998, 9:00 a.m.]