953 Inpatient hospital services

DEPARTMENT OF
PUBLIC WELFARE

Inpatient Hospital Services

[30 Pa.B. 2839]

   The purpose of this announcement is to provide advance public notice of the Department of Public Welfare's (Department) intent to revise its payment method for inpatient hospital services effective July 1, 2000. 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 proposes to continue the basic rate setting and payment methodology in effect since July 1, 1998, with the following modifications:

I.  Base Payment Rates

   A.  Effective January 1, 2001, each hospital's inpatient base payment rate in effect as of December 31, 2000, will be increased by 2.8%.

   B.  Effective January 1, 2002, each hospital's inpatient base payment rate in effect as of December 31, 2001, will be increased by 2.8%.

II.  Inpatient Disproportionate Share; Outpatient Disproportionate Share; and Direct Medical Education Payments

   A.  Effective July 1, 2000, the aggregate maximum amount of inpatient and outpatient disproportionate share payments and direct medical education payments is $182.07 million total funds. This amount reflects a 2% increase from the prior fiscal year.

   B.  Effective July 1, 2001, the aggregate maximum amount of inpatient and outpatient disproportionate share payments and direct medical education payments is $185.7 million total funds. This amount represents a 2% increase from the aggregate amount for Fiscal Year 2000-01.

III.  Additional Provisions

   A.  Effective July 1, 2000, and July 1, 2001, the Department will redetermine eligibility for inpatient disproportionate share payments. The Department intends to use the same methodology for determining eligibility for inpatient disproportionate shares as used for Fiscal Years 1997-98 and 1998-89. Outpatient disproportionate share and direct medical education payments will be made to hospitals which have entered into grant agreements with the Department.

   B.  Effective July 1, 2000, the Department will prospectively change the calculation of rates when two or more acute care hospitals merge. The calculation will be weighted by the hospital's Medical Assistance cases and case mix index.

   C.  The Department plans to continue making capital and cost outlier payments as done in Fiscal Years 1997-98 and 1998-99. Further, the Department intends to continue its augmented payment policy for certain high volume Medical Assistance hospitals.

Fiscal Impact

   This change will result in a cost of $7.384 million in total funds ($3.421 million in State funds and $3.963 million in Federal funds) for Fiscal Year 2000-01. This change will result in a cost of $25.126 million in total funds ($11.644 million in State funds and $13.832 million in Federal funds) for Fiscal Year 2001-02.

Contact Person

   A copy of this notice is available for review at local county assistance offices. Interested persons are invited to submit written comments 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: Suzanne Love, 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 requiring an alternate format should contact Thomas Vracarich at [phone].

FEATHER O. HOUSTOUN,   
Secretary

[Pa.B. Doc. No. 00-953. Filed for public inspection June 2, 2000, 9:00 a.m.]