Section 1603-O. Hospital assessments.
(a) Assessments.--Notwithstanding any other provision of law, the assessments authorized and implemented under Article VIII-E of the act of June 13, 1967 (P.L.31, No.21), known as the Human Services Code, shall continue and remain in effect until June 30, 2029, except as otherwise provided under this section. Beginning July 1, 2024, the following shall apply:
(1) In order to generate additional revenues for the purpose of assuring that medical assistance recipients have access to hospital and other health care services, and subject to the conditions and requirements specified under Article VIII-E of the Human Services Code, a municipality may, by ordinance, impose an assessment on the following:
(i) Each general acute care hospital.
(ii) Each high-volume Medicaid hospital.
(iii) Each cancer hospital.
(iv) Each children's hospital.
(2) A municipality shall, by ordinance, establish the assessment imposed under paragraph (1) as a percentage of each hospital's net patient revenue reduced by all revenues received from Medicare for the year as the municipality shall specify, and may establish different assessment percentages as follows:
(i) An assessment percentage for a hospital identified under paragraph (1)(i) and (iii).
(ii) An assessment percentage for a hospital identified under paragraph (1)(ii).
(iii) An assessment percentage for a hospital identified under paragraph (1)(iv).
(3) A municipality may include appropriate administrative provisions in an ordinance adopted under paragraph (2), including, without limitation, provisions for the collection of interest and penalties and provisions for the calculation and imposition of the assessment on a hospital subject to the assessment which, during a fiscal year in which the assessment is imposed, changes ownership or control, begins operations, closes or experiences any other change that affects the hospital's status as a general acute care hospital, high-volume Medicaid hospital, cancer hospital or children's hospital.
(4) Notwithstanding section 804-E(b)(2) of the Human Services Code, funds in the restricted account established under section 804-E(b) shall be used by the Department of Human Services to make payments to medical assistance managed care organizations for additional payments for health care services within the municipality.
(5) The Secretary of Human Services shall seek Federal approval from the United States Department of Health and Human Services as necessary to make the payments authorized under paragraph (4) and section 804-E(b) of the Human Services Code.
(b) Definitions.--As used in this section, the following words and phrases shall have the meanings given to them in this subsection unless the context clearly indicates otherwise:
"Cancer hospital." A free-standing acute care hospital organized primarily for the treatment of and research on cancer and which is an exempt hospital as defined in section 801-G of the Human Services Code.
"Children's hospital." A hospital that is a type of hospital excluded under 42 CFR 412.23(d) (relating to excluded hospitals: classifications) from reimbursement of certain Federal funds under the prospective payment system specified under 42 CFR Pt. 412 (relating to prospective payment systems for inpatient hospital services).
"General acute care hospital." A hospital other than a hospital that the Secretary of Human Services has determined meets one of the following:
(1) Is a type of hospital excluded under 42 CFR 412.23(a), (b), (e) or (f) from reimbursement of certain Federal funds under the prospective payment system specified under 42 CFR Pt. 412.
(2) Is a Federal veterans' affairs hospital.
(3) Is a high-volume Medicaid hospital.
(4) Provides care, including inpatient hospital services, to all patients free of charge.
(5) Is a cancer hospital.
(6) Is a children's hospital.
"High-volume Medicaid hospital." A hospital that the Secretary of Human Services has determined meets all of the following:
(1) Is a nonprofit hospital subsidiary of a State-related institution as that term is defined in 62 Pa.C.S. § 103 (relating to definitions).
(2) Has provided more than 60,000 inpatient acute care days of care to Pennsylvania medical assistance patients as reported by the hospital's State fiscal year 2018-2019 medical assistance hospital cost report on file with the Department of Human Services as of June 22, 2021.
"Net patient revenue." Gross revenues received or earned by a hospital for inpatient and outpatient hospital services, including medical assistance supplemental revenues received by the hospital for inpatient and outpatient hospital services, less any deducted amounts for bad debt expense, charity care expense and contractual allowances as identified in the hospital's records or on forms as specified by the Department of Human Services for the following:
(1) The State fiscal year commencing July 1, 2021, or a later State fiscal year, as may be specified by the Department of Human Services.
(2) The most recent State fiscal year, or part thereof, if amounts are not available under paragraph (1).
(1603-O added July 11, 2024, P.L.550, No.54)
Compiler's Note: Section 22 of Act 54 of 2024 provided that the addition of section 1603-O shall apply retroactively to June 30, 2024.