PRINTER'S NO. 1860
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
1238
Session of
2020
INTRODUCED BY STREET, TARTAGLIONE AND MUTH, JULY 27, 2020
REFERRED TO APPROPRIATIONS, JULY 27, 2020
AN ACT
Amending the act of April 9, 1929 (P.L.343, No.176), entitled
"An act relating to the finances of the State government;
providing for cancer control, prevention and research, for
ambulatory surgical center data collection, for the Joint
Underwriting Association, for entertainment business
financial management firms, for private dam financial
assurance and for reinstatement of item vetoes; providing for
the settlement, assessment, collection, and lien of taxes,
bonus, and all other accounts due the Commonwealth, the
collection and recovery of fees and other money or property
due or belonging to the Commonwealth, or any agency thereof,
including escheated property and the proceeds of its sale,
the custody and disbursement or other disposition of funds
and securities belonging to or in the possession of the
Commonwealth, and the settlement of claims against the
Commonwealth, the resettlement of accounts and appeals to the
courts, refunds of moneys erroneously paid to the
Commonwealth, auditing the accounts of the Commonwealth and
all agencies thereof, of all public officers collecting
moneys payable to the Commonwealth, or any agency thereof,
and all receipts of appropriations from the Commonwealth,
authorizing the Commonwealth to issue tax anticipation notes
to defray current expenses, implementing the provisions of
section 7(a) of Article VIII of the Constitution of
Pennsylvania authorizing and restricting the incurring of
certain debt and imposing penalties; affecting every
department, board, commission, and officer of the State
government, every political subdivision of the State, and
certain officers of such subdivisions, every person,
association, and corporation required to pay, assess, or
collect taxes, or to make returns or reports under the laws
imposing taxes for State purposes, or to pay license fees or
other moneys to the Commonwealth, or any agency thereof,
every State depository and every debtor or creditor of the
Commonwealth," in emergency COVID-19 response, providing for
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
appropriations from the account and for continuing
appropriations.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Article 1-C of the act of April 9, 1929 (P.L.343,
No.176), known as The Fiscal Code, is amended by adding a
subarticle to read:
SUBARTICLE B.1
APPROPRIATIONS FROM THE ACCOUNT
Section 115-C. Definitions.
The following words and phrases when used in this subarticle
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Current fiscal year." The fiscal year beginning July 1,
2020, and ending June 30, 2021.
Section 116-C. Construction with the General Appropriation Act
of 2020.
All appropriations contained in this subarticle from the
General Fund shall be in addition to any appropriation under the
act of May 29, 2020 (P.L. , No.1A), known as the General
Appropriation Act of 2020, and the act of May 29, 2020 (P.L. ,
No.2A), known as the COVID-19 Emergency Supplement to the
General Appropriation Act of 2019.
Section 117-C. Department of Human Services.
(a) Appropriations.--The following Federal amounts are
appropriated from the COVID-19 Response Restricted Account to
the Department of Human Services for the current fiscal year:
(1) The sum of $450,000,000 is appropriated for the
purpose of grants to public payor dependent general acute
care hospitals where combined Medicaid payments and Medicare
payments represent more than 48.91% of the hospital's net
20200SB1238PN1860 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
patient revenue based on the 2019 Pennsylvania Health Care
Cost Containment Council Hospital Financial Condition Report
in accordance with the following formula:
(i) The sum of $25,000,000 shall be distributed as
grants to all eligible general acute care hospitals based
upon an equal share per eligible hospital.
(ii) The sum of $265,000,000 shall be distributed as
grants to all eligible hospitals by grants equaling 2.5%
of each general acute care hospital's fiscal year 2019
net patient revenue.
(iii) The sum of $90,000,000 shall be distributed as
grants to eligible hospitals equaling 2% of each general
acute care hospital's fiscal year 2019 net patient
revenue when combined Medicare and Medicaid payments
represent 66% or more of the hospital's net patient
revenue.
(iv) The sum of $70,000,000 shall be distributed as
grants to eligible hospitals equaling 2% of a general
acute care hospital's fiscal year 2019 net patient
revenue when Medicaid payments represent at least 25% of
a hospital's net patient revenue.
(2) The sum of $25,000,000 is appropriated for the
purpose of grants to freestanding psychiatric hospitals where
combined Medicaid payments and Medicare payments represent
more than 58.07% of the hospital's net patient revenue based
on the 2018 Pennsylvania Health Care Cost Containment Council
Financial Condition Report in accordance with the following
formula:
(i) The sum of $10,000,000 shall be distributed as
grants to all eligible freestanding psychiatric hospitals
20200SB1238PN1860 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
based upon an equal share per eligible hospital.
(ii) The sum of $15,000,000 shall be distributed as
grants to all eligible freestanding psychiatric hospitals
equaling 2.5% of each eligible freestanding psychiatric
hospital's fiscal year 2018 net patient revenue.
(3) The sum of $25,000,000 is appropriated for the
purpose of grants to freestanding medical rehabilitation
hospitals where combined Medicaid payments and Medicare
payments represent more than 45.07% of the hospital's net
patient revenue based on the 2018 Pennsylvania Health Care
Cost Containment Council Financial Condition Report in
accordance with the following formula:
(i) The sum of $6,000,000 shall be distributed as
grants to all eligible freestanding rehabilitation
hospitals based upon an equal share per eligible
hospital.
(ii) The sum of $19,000,000 shall be distributed as
grants equaling 2.5% of a freestanding rehabilitation
hospital's fiscal year 2018 net patient revenue.
(b) Submission of information.--Prior to award of a grant to
an eligible hospital under this section, the hospital shall
submit information, in a form determined by the Secretary of
Human Services, to the Secretary of Human Services, the
chairperson and minority chairperson of the Appropriations
Committee of the Senate and the chairperson and minority
chairperson of the Appropriations Committee of the House of
Representatives that summarizes the hospitals financial
condition, including revenues, expenses, receipt of direct
federal COVID-19 grants and other relevant information.
Notwithstanding any other provision of law, the individual
20200SB1238PN1860 - 4 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
hospital information submitted under this subsection shall be
considered proprietary and confidential.
(c) Noncompliance.--Money allocated to a hospital that does
not comply with the requirements of subsection (b) shall be
redistributed to the remaining hospitals in the same class of
eligible hospitals in accordance with the requirements of this
section.
(d) Limitation and redistribution.--A grant to a hospital
under this section shall not exceed 10% of the hospital's net
patient revenue and any excess funds shall be redistributed to
other eligible hospitals within the same class of eligible
hospitals.
(e) Purpose.--Money allocated to a hospital under this
section shall be expended for purposes that are consistent with
applicable Federal law and is intended, among other relevant
factors, to address social determinants of health, innovative
services and service delivery changes in the context of COVID-19
response, and to maintain access to needed services for the
communities they serve, particularly Medical Assistance
recipients and other vulnerable Pennsylvanians.
Section 118-C. Continuing appropriations.
The appropriations in this subarticle shall be continuing
appropriations and shall not automatically lapse as of the close
of the current fiscal year.
Section 2. This act shall take effect immediately.
20200SB1238PN1860 - 5 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25