State College, Pa.-based Mount Nittany Medical Center is continuing the legal battle to restore its sole community hospital designation, which CMS terminated in April, and estimates that the designation loss will cost the hospital approximately $15 million annually.
In June, the hospital filed a lawsuit challenging the decision to cancel its SCH designation, which at the time it estimated would reduce Medicare reimbursement by approximately $9 million annually.
The revised estimate reflects an ongoing analysis of the designation loss, affecting reimbursement for both inpatient and outpatient services, including payments from traditional Medicare and Medicare Advantage plans, according to the hospital’s website.
Mount Nittany filed a brief Sept. 21 in support of a motion for summary judgment, asking a federal court to consider legal arguments and evidence in the case to determine if this matter can be decided without a trial. There is no set timeframe for the court’s ruling on the motion.
“SCH reimbursement has helped support Mount Nittany Health’s ability to provide high-quality care locally and invest in the services, technology, facilities and providers our community needs,” the post said. “Seeking restoration of the designation is part of our continued commitment to preserving Mount Nittany Health as an independent, community-governed health system, with decisions about healthcare in our region made locally.”
