2011-03-31 / Local & State

Hospital Group: PA Cuts Will Cost $183 Million From Feds

HARRISBURG, Pa. (AP) – Pennsylvania’s hospitals are criticizing cuts to state funding they say will cost them more than $180 million in matching federal funds.

The Hospital & Healthsystem Association of Pennsylvania says Gov. Tom Corbett’s proposed budget cuts $150 million in state aid. That means the loss of an additional $183 million in funds from the federal government for a total funding loss of $333 million.

The hospital association tells The Patriot-News of Harrisburg that hospitals agreed to a 2.95 percent revenue tax last year to provide the state with money needed to get the matching funds.

Corbett’s office says the cuts are needed to offset a looming $4 billion budget shortfall. An office spokeswoman says the hospitals will still get $1.2 billion in combined state and federal money.

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