The Lastest: Over the course of today and tomorrow, the Pennsylvania General Assembly will enact a series of bills related to the state’s fiscal year 2011-2012 budget that have an impact on hospital funding. The Governor will then sign the bills to fulfill a commitment to have a state budget passed on time. HAP Memo 11-64 provides a summary of the budget items affecting hospitals, and next steps on budget implementation.

Background: On March 8, Governor Corbett released his proposed 2011-2012 state budget . The proposed $27.3 billion state budget reflects a spending decrease of 3 percent as compared to the 2010-2011 budget, and significantly cuts hospital Medicaid payments by $333.3 million—$150.3 million in state funds and $183 million in federal matching funds. The budget also includes a supplemental appropriation for the current year of $162 million.

This budget proposal comes at a time when Pennsylvania remains challenged as a result of increased essential service needs coupled with lower revenues, predominantly as a result of the termination of various federal stimulus funds.

Available Resources:

• HAP Fact Sheet: Proposed Budget Cuts to Hospitals Breach 2010 Agreement (May 2011) 
• HAP Fact Sheet: Facts About Hospital Uncompensated Care (May 2011) 
• HAP Fact Sheet: Facts About Obstetric & Neonatal Hospital Care Services (May 2011)
• HAP is a guest on Comcast Newsmakers to talk about the state budget’s impact on hospitals (video).
• HAP in Focus video (April 2011) - State Budget’s Impact on Hospitals
• HAP has available sample letters for hospitals to use (Microsoft Word document) to contact their lawmakers regarding the proposed budget cuts. Each letter focuses on a different aspect of the hospital community message—including economic impact of hospitals, the population served by Medical Assistance, and/or the contribution hospitals made in advancing Act 49.
• HAP’s most recent economic impact report, Pennsylvania’s Hospitals Critical to State Economy , demonstrates that Pennsylvania’s nearly 250 hospitals and health systems continue to be critical economic drivers for their communities and the commonwealth.
• Interactive Pennsylvania Medicaid Map provides county-level information about the percentage of the Medicaid population and additional demographic details.
• The Medicaid Connection: Patients, Hospitals, Communities Video (Part 1) shares important facts about the 2.2 million Pennsylvanians who have Medicaid insurance and highlights the critical connection between Medicaid and hospitals.
• The Medicaid Connection: Patients, Hospitals, Communities Video (Part 2) shares important information about the essential health services and other benefits Pennsylvania hospitals provide in communities across the state.
• March 2011 Franklin & Marshall College Poll of Pennsylvanians shows significant support for continuing state funding of Medicaid.

• State Budget Final Update
  HAP Memo
• Update on State Budget and Fair Share Act
  HAP Memo
• Budget and Joint and Several Liability—Status Update
  HAP Memo
• State Budget Update: Contact Your State Representative
  HAP Memo
• PA Hospitals Release First Quality and Patient Safety Report; State Budget Must Support Continuous Improvement
  News Release
• Additional Information about House Republicans’ Budget Proposal and Clarification from HAP Memo 11-45
  HAP Memo
• House Republicans Introduce $27.3 Billion No-Tax Budget Proposal; Includes Partial Restoration of Hospital Supplemental Payments
  HAP Memo
• State Budget—Communications / Media Tools for Members
  HAP Memo
• Urgent—Lawmakers Must Hear from Hospitals on State Budget Now—Member Action Requested
  HAP Memo
• Report: Pennsylvania Hospitals Critical to State’s Economy
  News Release
• HAP Advocacy Days Provide Forum to Deliver Hospitals’ Key Messages
  HAP Memo
• 2011-2012 State Budget Proposal—Hospital Impact and Advocacy
  HAP Memo
• Hospitals a “Must-Have” in Pennsylvania State Budget
  Op-Eds
• Governor’s 2011-2012 State Budget Proposal Contains Major Hospital Cuts
  HAP Memo
• PA Hospitals Provide Important Health Care and Critical Jobs
  News Release