Advocacy Correspondence: Senate Appropriations Committee, Funding for Medicaid Supplementals

June 20, 2023

Dear Chairman Martin and Chairman Hughes:

On behalf of 235 members statewide, The Hospital and Healthsystem Association of Pennsylvania (HAP) supports funding for important Medicaid supplemental payments for hospital services, as currently included in the administration’s budget proposal: obstetric and neonatal services at $3,681,000; burn units at $4,437,000; and trauma centers at $8,656,000. In addition—to ensure that all federally designated critical access hospitals remain funded after calculating this year’s Medicaid losses—the general budget appropriation for these hospitals should be increased to $14,471,730.

There are 80 obstetric and 63 neonatal units, seven burn units, 50 trauma centers, and 16 critical access hospitals throughout the commonwealth. Medicaid supplemental payments to those who provide these services support access to care for vulnerable Pennsylvanians, including children.

Funds provide:

• Prenatal, childbirth, postpartum, and neonatal care
• Treatment for patients with significant burn injuries
• Care for patients with life-threatening injuries
• 24/7 emergency department services at critical access hospitals

These payments save lives:

• Medicaid paid for roughly 35 percent of all 2020 births in Pennsylvania.
• Critical access hospitals—which are at least 35 miles from any other hospital—provide emergency health care to Pennsylvanians who live in rural areas.
• Burns centers treat only the most extensive injuries—such as third-degree, inhalation, and chemical burns—as well as children from hospitals where appropriate treatment may not be available.
• During 2020, more than 96 percent of Pennsylvania’s trauma patients survived their hospitalization, thanks to the commonwealth’s accredited trauma centers which saved 47,512 lives.                                                

It is important to note that if Medicaid supplemental lines are reduced, then federal matching funds are also reduced, further straining the state budget and limiting care to vulnerable Pennsylvanians.

Pennsylvania does not have a public health system and hospitals treat patients no matter their ability to pay. Supplemental Medicaid support is a significant way that the state partners with hospitals to provide care to those who need it most.

On behalf of Pennsylvania hospitals and the patients they serve, we respectfully ask that you please maintain funding for these critical Medicaid supplemental payments as you consider the 2023–2024 state budget.

Thank you for your time, consideration, and work to improve health care for all Pennsylvanians. If you have any questions, comments, or concerns, please contact me at HTyler@HAPonline.org or (717) 433-1997. We stand ready to assist in this vital work.

Sincerely,

 

Heather Tyler
Vice President, State Legislative Advocacy

 

cc:  Appropriations Committee Members

 

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Topics: Medicaid, State Advocacy

Revision Date: 6/20/2023

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