In fiscal year 2011, Pennsylvania’s Medicaid program paid hospitals $542 million less than the cost of care for Medicaid patients, and that figure is expected to grow exponentially. In FY 2015, the shortfall is expected to exceed $1.45 billion.
State Medicaid programs normally pay hospitals less than the cost of care, but HAP President and CEO Carolyn Scanlan believes Pennsylvania’s policies are exacerbating the widening gap between hospital costs and Medicaid payments.
“While hospitals’ Medicaid payments improved modestly over the past two years, the payment shortfall remained and budget proposals now on the table will nullify any short-term improvements,” Ms. Scanlan said in a news release.
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