December 24, 2003

While much of the wrangling in Harrisburg these last six months (Pennsylvania being the only state without a completed budget!) over the budget impasse has focused on school funding disputes, three other issues - restoring cuts in Medical Assistance funding for hospitals, restoring funding for medical education and allocating funding to help physicians pay part of their medical liability costs - were of immediate concern to PENN Medicine.

As you have likely read in the press, the budget impasse has finally been resolved. We are pleased to report that the General Assembly passed and Governor Rendell yesterday signed into law legislation that fully restores the Medical Assistance cuts, funds the Governor's proposals for medical education funding and funds a program to help physicians pay part of their medical liability expenses. The impact on PENN Medicine is considerable: $14 million in restored Medical Assistance funding; $3.8 million for the School of Medicine for medical education; and $13.4 million to offset a portion of our medical liability costs.

For the HAP memo that summarizes some of the detail of the budget package, click here: Hap Memo - December 24, 2003

The Government Relations Weekly Update is provided by the
Office of Government Relations of the University of Pennsylvania Health System

Alan N. Rosenberg
Government Relations Office
University of Pennsylvania Health System
2021 Penn Tower/4385
Phone: 215-349-5136
Fax: 215-662-3910

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