DEPARTMENT OF
PUBLIC WELFAREInpatient Hospital Services [37 Pa.B. 1745]
[Saturday, April 14, 2007]The purpose of this notice 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 hospitals.
The Department published notice at 37 Pa.B. 269 (January 13, 2007) that provided advance public notice of the Department's proposed changes to its payment methodology for inpatient hospital services effective January 14, 2007.
Base Payment Rate
The Department will to increase each hospital's or hospital unit's base payment rate for inpatient services provided on a fee-for-services basis by 4.16%.
Inpatient Disproportionate Share; Volume Disproportionate Share; Outpatient Disproportionate Share; and Direct Medical Education Payments
The Department received comments to the published notice at 37 Pa.B. 269, that the increases in Inpatient Disproportionate Share, Volume Disproportionate Share and Medical Education payments should be 4% rather than 3.5%. As such, this final notice provides for these changes as follows:
The Department will to increase Inpatient Disproportionate Share payments by 4%, with no change in the current methodology for determining eligibility for those payments. For Fiscal Year (FY) 2006-2007, the aggregate amount of Inpatient Disproportionate Share payments is to be limited to $65.504 million in total funds.
The Department will to increase Volume Disproportionate Share payments by 4%, with no change in the current methodology for determining eligibility for those payments. For FY 2006-2007, the aggregate amount of Volume Disproportionate Share payments is to be limited to $10.438 million in total funds.
The Department will to increase Medical Education payments by 4%, with no change in the current methodology for determining eligibility for those payments. For FY 2006-2007, the aggregate amount of Medical Education payments is to be limited to $80.841 million in total funds.
The Department will to increase Outpatient Disproportionate Share payments by 4%, with no change in the current methodology for determining eligibility for those payments. For FY 2006-2007, the aggregate amount of Outpatient Disproportionate Share payments is to be limited to $62.526 million in total funds.
Fiscal Impact
The fiscal impact of the increase in the base payment rates is estimated at $11.416 million ($5.274 million in State funds) in FY 2006-2007 and $35.415 million ($16.501 million in State funds) for FY 2007-2008. The fiscal impact of the increases to the Inpatient Disproportionate Share, Volume Disproportionate Share, Outpatient Disproportionate Share and Direct Medical Education Payments is estimated at $2.150 million ($0.981 million in State funds) 2006-2007 and $8.643 million in ($3.962 million in State funds) in FY 2007-2008.
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 for any subsequent revision of the notice.
Person's with a disability who require an auxiliary aid or service may submit comments using the AT&T Relay Services at (800) 654-5984 (TDD users) or (800) 654-5988 (voice users).
ESTELLE B. RICHMAN,
SecretaryFiscal Note: 14-NOT-501. (1) General Fund:
MA-Inpatient MA-Outpatient (2) Implementing Year
2006-07 is$5,975,000 $280,000 (3) 1st succeeding Year
2007-08 is$19,333,000 $1,130,000 2nd succeeding Year
2008-09 is$19,333,000 $1,130,000 3rd succeeding Year
2009-10 is$19,333,000 $1,130,000 4th succeeding Year
2010-11 is$19,333,000 $1,130,000 5th succeeding Year
2011-12 is$19,333,000 $1,130,000 (4) 2005-06 Program-- $474,673,000 $945,950,000 2004-05 Program-- $531,785,000 $842,991,000 2003-04 Program-- $411,042,000 $677,979,000 (7) Medical Assistance (MA) Inpatient and MA Outpatient; (8) recommends adoption. Funds have been included to cover these increased costs.
[Pa.B. Doc. No. 07-667. Filed for public inspection April 13, 2007, 9:00 a.m.]
