Member Action: Hospital and health system leaders, employees, and volunteers are encouraged to email their lawmakers to oppose hospital payment cuts in the state budget.In addition, HAP member hospital and health systems are encouraged to participate in HAP’s state budget advocacy day on May 22.
The Latest: The Senate approved a state budget package( amendment to Senate Bill 1466) that increases Governor Corbett’s $27.15 billion proposed budget to $27.65 billion, including restoration of the Medical Assistance (MA) payment supplementals to FY 2011-12 levels (prior to the mid-year freeze), and a decrease in the across-the-board hospital rate reduction from 4 percent to 2 percent. The bill also lessens reductions to mental health and related human services programs in the Department of Public Welfare. Even with these positive developments, as the budget process moves forward, hospitals will continue to press 2012-2013 budget needs. House Republican leadership said it is working with the Senate on the amended budget bill, and Senate Democrat leaders said they see the plan as a good first step. However, State Budget Secretary Zogby raised concerns about the sustainability of the revised budget plan. The legislation now moves to the House for consideration.
Background: Under the theme, “On the Path to Prosperity,” Governor Corbett introduced his second state budget. The $27.1 billion 2012-2013 budgetproposes more than $800 million in cost containment provisions—payment reductions, stricter eligibility requirements, and post-care review—to the Department of Public Welfare’s (DPW) budget. The budget proposal also calls for other major policy changes, including establishing block grants for human services under DPW, and for basic education.
