Pennsylvania’s Medical Assistance program will no longer pay hospitals for care they provide to normal newborns delivered by patients who participate in the state’s fee-for-service program.
This policy change, which took effect on May 1, will have a greater impact on Pennsylvania’s safety-net hospitals than on other hospitals because safety-net hospitals are involved in far more Medicaid-covered deliveries than other hospitals – two-thirds of such births according to the recent SNAP report Pennsylvania’s Safety-Net Hospitals:  Vital Providers, Vital Employers, which you can find here.
The policy change governing how Medicaid will pay hospitals for the care they provide to normal newborns is described in greater detail in a May 4 Medical Assistance Bulletin, which you can read here.