CONCORD, N.H.-An upcoming change in state Medicaid law will tax hospitals in New Hampshire based on their net revenue instead of gross revenue, a requirement that the New Hampshire Hospital Association is monitoring. Starting Jan. 1, 2005, most of New Hampshire's 33 hospitals will begin paying a Medicaid tax based on net patient services revenue, defined as the amounts recorded by the hospital at established rates for services provided to patients, regardless of whether full payment of such amounts is expected or paid. New Hampshire legislators approved the new tax earlier this year. The CMS told the state to make the change after it applied for other amendments to its federal Medicaid plan, said Mike Hill, president of the hospital association. He predicted that any effect on hospitals would likely be minimal. Any individual hospital in the state that expects to be harmed by the change can file a protest on its own, Hill said. None had done so as of last week.
WILKES-BARRE, Pa.-Wyoming Valley Health Care System, Penn State Milton S. Hershey (Pa.) Medical Center and Penn State College of Medicine announced last month that they are partnering to provide clinical services in northeastern Pennsylvania where Wyoming Valley's flagship hospital, 421-bed Wilkes-Barre (Pa.) General Hospital, is located. Under the terms of the affiliation agreement, Wyoming Valley and Penn State will regularly meet to set priorities, evaluate joint opportunities and explore potential for growth in key clinical programs and services. A memorandum of understanding was to be signed that will expand Wyoming Valley's offerings in neurosurgery through the use of Penn State doctors, resources and services at the Wilkes-Barre facility. Penn State neurosurgeons will be headquartered in a same-day surgery center next to the hospital.