BRIEF -- Appeals court rules for HUP

The affirmed decision of Ja - nuary 24, 1990, holds that Pennsylvania's Medical Assistance Program, which pays hospitals for their impatient treatment of Medicaid patients, was making arbitrary payments, since hospital payments were not related to the efficiency or economy of individual hospitals. This is in violation Title XIX of the Social Security Act. MAP was also flawed, according to the federal court, since Pennsylvania's across-the- board "budget newutrality" cut to all hospitals was not & justifiable. The Pennsylvania Department of Public Welfare who & adopted MAP, "had conducted no analysis and had made no findings as to the reasonable - ness or adequacy of its rates to cover the costs od an efficiently and economically operated hospital," the opinion stated. The opinion added that the DPW did not comply with federal standards for disproportionate care, which increases & funding for hospitals that treat a high number of low-income patients. Specifically the court & ruled that the 2.5 percent add- on for Temple University Hospital was inadequate. HUP is one of 140 hospitals that filed complaints against the commonwealth on this matter. With this decision, a new & MAP will have to be devised by the DPW which complies with Title XIX. In the mean time, the DPW will have to pay remedies to the hospitals. Spokesperson for the DPW & John Harwood declined to comment Tuesday. -- Stephen Glass

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