Before May 1, the DPW reimbursed hospitals an average of $5,712 for a mother’s healthcare services and $1,155 for the baby’s healthcare for a total of $6,867, according to the report. However, DPW eliminated the payment for the infant’s healthcare services, and now hospitals are taking on the added expenses.
Rene Suntay, CFO of Meadville (Pa.) Medical Center, said in the report that his hospital sees roughly 225 annual deliveries for mothers on state welfare. Losing the $1,155 “takes $260,000 off my bottom line completely,” he said. Even before the cuts, the hospital was losing money on the births, as they cost between $7,800 and $8,400 on average.
MMC and other hospitals plan to still offer the service. MMC President and CEO Philip Pandolph said in the report they will find other areas to offset the losses, something hospitals are frequently asked to do these days. “We’re used to these things,” Mr. Pandolph said in the report. “That’s the world we live in. We adjust the best we can.”
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