1Providing for funding to certain hospitals in sixth, seventh and
2eighth class counties; and imposing powers and duties on the
3Department of Public Welfare.

4The General Assembly of the Commonwealth of Pennsylvania
5hereby enacts as follows:

6Section 1. Short title.

7This act shall be known and may be cited as the Rural
8Community Hospital Act.

9Section 2. Definitions.

10The following words and phrases when used in this act shall
11have the meanings given to them in this section unless the
12context clearly indicates otherwise:

13"Department." The Department of Public Welfare of the
14Commonwealth.

15"Hospital." An entity located in this Commonwealth that is
16licensed as a hospital under the act of July 19, 1979 (P.L.130,
17No.48), known as the Health Care Facilities Act.

18"Qualified hospital." A hospital that satisfies the

1requirements of section 3.

2Section 3. Qualification of hospital.

3To be eligible to receive funds as a qualified hospital under
4this act, a hospital must:

5(1) Be located in a county of the sixth, seventh or
6eighth class that has greater than 15% of its population
7eligible for medical assistance or has greater than 10,000
8persons eligible for medical assistance.

9(2) Have less than 200 licensed and staffed inpatient
10beds.

11(3) Not be a critical access hospital, as defined in
12section 1820(e) of the Social Security Act (49 Stat. 620, 42
13U.S.C. § 1935i-4), that is qualified to participate under
14Title XIX of the Social Security Act (49 Stat. 620, 42 U.S.C.
15§ 1396 et seq.).

16Section 4. Funding for fiscal year 2013-2014.

17(a) Distribution.--During the fiscal year beginning July 1,
182013, upon Federal approval of an amendment to the Medicaid
19State plan, the department shall allocate annually from funds
20appropriated for this purpose disproportionate share payments to
21qualified hospitals to provide financial assistance to assure
22readily available health care to citizens in certain rural
23counties of this Commonwealth.

24(b) Maximizing Federal funds.--The department shall seek to
25maximize any Federal funds, including funds obtained under Title
26XIX of the Social Security Act (49 Stat. 620, 42 U.S.C. § 1396
27et seq.) available for rural community hospitals.

28(c) Payment calculation.--Payments to qualified hospitals
29shall be allocated as follows:

30(1) Fifty percent of the total amount available for

1qualified hospitals shall be allocated equally among each
2qualified hospital.

3(2) Fifty percent of the total amount available shall be
4divided proportionately among qualified hospitals based on
5the percentage of each qualified hospital's acute medical
6assistance inpatient days to total hospital bed days used for
7all qualified hospitals.

8(3) A qualified hospital that has reached its
9disproportionate share limit as under Title XIX of the Social
10Security Act shall receive its share of the State funds
11available under this act.

12Section 5. Funding for subsequent fiscal years.

13Beginning July 1, 2014, the department shall reimburse a
14qualified hospital at a rate of 101% of the Medical Assistance
15allowable costs for inpatient hospital and outpatient hospital
16services provided to a Medical Assistance recipient.

17Section 20. Effective date.

18This act shall take effect immediately.