HARRISBURG, Pa.—The Hospital and Healthsystem Association of Pennsylvania last week rejected a proposal in the governor's budget that the trade group said would cut state Medicaid payments to hospitals by roughly $31.9 million. The trade group said Gov. Edward Rendell's $66.4 billion budget would reduce overall Medicaid reimbursement by $73.4 million after factoring in the loss of federal funds that match state spending for the safety net program. Federal funding for Medicaid increased temporarily under the American Recovery and Reinvestment Act of 2009. If extended through June 30, Pennsylvania could receive an estimated $850 million.
Regionals: Geisinger opened its Hospital for Advanced Medicine and more news ...
PASSAIC, N.J.—A federal bankruptcy judge has approved a reorganization plan that will allow 289-bed St. Mary's Hospital to reorganize its debt and continue to operate without selling all its assets to another party. A news release from the hospital said it was the first of New Jersey's five hospitals that have declared bankruptcy since 2007 to emerge from Chapter 11 court proceedings with its business still intact. The others have all either seen their reorganization plans rejected, or have had to sell their assets to another party, according to the release. The stand-alone hospital filed a voluntary petition for bankruptcy in March 2009, after efforts to find a strategic partner to purchase its assets failed, according to court records. The hospital posted an operating loss of $16.5 million in 2008, and “by the middle of 2008 the debtor (St. Mary's Hospital) realized that it might not be able to continue absent an immediate cash infusion.” One of the numerous creditors in the case is the CMS, which was owed $6.7 million for an undisclosed Sept. 30, 2009 claim related to Medicare disproportionate-share payments. In addition, three labor unions accepted modified claims.
DANVILLE, Pa.—Geisinger Health System opened its $100 million Hospital for Advanced Medicine, a nine-story addition to the system's flagship hospital Geisinger Medical Center, also in Danville. The 308,000-square-foot addition, which opened Feb. 9, includes 32,000 square feet for four operating rooms. The nine-story expansion also includes two floors for outpatient cardiac and vascular services and 60 inpatient beds for its Geisinger Heart and Vascular Institute. The newly constructed addition also includes room for expansion. Construction on a parking garage with capacity for 600 vehicles is expected to finish in April.
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