In early February, Governor Wolf introduced his proposed state spending plan for the 2018–2019 fiscal year. The budget maintains 2017–2018 funding levels for hospital payments, including the Medical Assistance (MA) Supplemental payments for critical access hospitals, obstetrics/neonatal payments, hospital burn centers, and trauma centers.
HAP is seeking an increase to the MA Supplemental payments for critical access hospitals to address increased Medicaid losses in these facilities.
In addition to the specific line item appropriations found in the state’s General Fund, the Governor’s budget also includes assumptions related to the reauthorization of the statewide hospital Quality Care Assessment (QCA).
Since 2010, Pennsylvania hospitals have been taxed in order to generate additional state revenue and to increase funds available for hospital Medicaid payments. The Governor’s budget seeks to increase the commonwealth’s share from the Hospital QCA from $220 million to $350 million––an approximately 60 percent increase ($130 million) over the current year amount. Pennsylvania hospitals oppose this unsustainable increase.