Hospitals to face $5B Medicaid shortfall in Pennsylvania

Pennsylvania hospitals could face a $5.28 billion shortfall over five years, should the proposed state budget change Medicaid payments, according to a Tuesday report from the Hospital & Healthsystem Association of Pennsylvania. Calling the shortfall "potentially catastrophic," Association President and CEO Carolyn Scanlan said if state revenue continues to improve, hospital payments should be restored in the final state budget. Medicaid paid Pennsylvania's hospitals $542 million less than the cost of care for Medicaid patients in fiscal year 2011. "For fiscal years 2013 through 2015, the shortfall exceeds $1 billion annually and peaks at $1.454 billion in 2015," Scanlan said. Report announcement