New PA Budget Boosts PA Safety-Net Hospitals
Pennsylvania’s recently adopted FY 2017 budget restores to safety-net hospitals selected supplemental Medicaid payments that were not included in the budget Governor Tom Wolf originally proposed in February.
The state’s FY 2017 budget restores, to FY 2016 levels, Medicaid OB/NICU, burn center, trauma center, and critical access hospital payments. All had been targeted for reduction or elimination in the governor’s budget proposal.
The new budget includes modest increases for the Medicaid fee-for-service program, for managed care spending, and for physician practice plans. It also designates an additional $3.75 million for academic medical centers.
The human services code revisions needed to direct the Department of Human Services to make these Medicaid payments also have been adopted.

Among other matters, the 764-page proposed regulation addresses:
Included in this edition are stories about the delay in implementation of the state’s Community HealthChoices program of managed long-term services and supports for the dually eligible; challenges for those seeking home and community-based services from state waiver programs; and more.
In addition, MACPAC looks at the more than 100 different tools used at the state level to assess the functional capabilities of individuals who may be eligible for Medicaid-funded long-term services and supports.
More than two million Medicare patients were hospitalized under observation status in 2014.
In SNAP’s view, maintaining vital Medicaid funding is critical to ensuring that hospitals in general, and safety-net hospitals in particular, can deliver quality health care services to the state’s growing Medicaid population while also investing in innovative ways to improve the quality and efficiency of health care for all Pennsylvanians.
This conclusion is drawn in a new study from the Georgetown University Health Policy Institute based on interviews with leaders of eleven hospital systems and federally qualified health centers (FQHCs) in seven states: four that expanded their Medicaid programs and three that did not.