‘Strongly disagree.’ Centre County, PA officials react to Mount Nittany's designation loss
AI-generated summary reviewed by our newsroom.
- Mount Nittany sued the federal government naming Kennedy and Oz to restore SCH status.
- Centre County officials publicly oppose the SCH removal and seek restoration.
- Local leaders warned the funding cut could strain the hospital and regional economy.
Centre County and Pennsylvania officials have expressed support for Mount Nittany Medical Center in the wake of the hospital’s estimated $9 million annual federal funding loss after the removal of a sole community hospital designation from the Centers for Medicare and Medicaid.
Mount Nittany Medical Center filed a lawsuit Friday against federal health officials, including defendants Robert F. Kennedy Jr., secretary of the U.S. Department of Health and Human Services, and Dr. Mehmet Oz, administrator of the Centers for Medicare & Medicaid Services, and is seeking restoration of its sole community hospital designation and the related funding.
“We do strongly disagree with the federal ruling on this particular topic,” Centre County Commissioner Mark Higgins said Tuesday. “Mount Nittany Hospital is mandated to provide [medical] services … that $9 million is going to have to come from somewhere else.”
Senator Dave McCormick, R-Pa., issued a statement on Tuesday afternoon urging CMS to reconsider its decision, citing the harm funding cuts could cause the community. McCormick wrote that the decision could “jeopardize critical federal support for healthcare delivery in Central Pennsylvania and undermine access to care for seniors, rural patients, and families who rely on Mount Nittany for essential inpatient services.”
Mount Nittany’s funding was reduced because the government said the hospital no longer qualifies as the sole community hospital in Centre County after the 2024 opening of Penn Highlands State College.
The primary Penn Highlands Hospital campus is based in Huntingdon County, where Penn Highlands State College still incorporates its data, according to Higgins. By Mount Nittany’s calculations, Penn Highlands State College accounts for only 5.5% of Mount Nittany’s volume — falling short of a key 8% threshold, the lawsuit states.
Higgins praised the work Mount Nittany does within the community, commending the 260-bed hospital as a “tremendous partner” of Centre County, and expressed skepticism that the Penn Highlands Hospital, which has 18 in-patient beds, 15 outpatient beds and 10 emergency room beds, will be able to provide a quarter of the necessary medical care in Centre County.
“It appears to be a serious mistake on the part of the federal government, this designation,” Commissioner Amber Concepcion said. “I would hope that it is possible for this to be worked out.”
Republican Commissioner Steven Dershem also expressed his hope that the hospital’s designation be restored.
“I’ve always believed more healthcare is better than less,” Dershem said. “It’s been perplexing when you’re being penalized for dividing services.”
In a statement, Chamber of Business and Industry of Centre County CEO and President Greg Scott shared concerns about the impact Mount Nittany’s significant loss of funding could have on the local economy.
“Any action that places additional financial pressure on our community hospital ultimately affects employers, employees, families, and the overall cost of living in our region,” Scott said. “As Centre County continues to grow, maintaining a strong, independent healthcare system remains critical to our quality of life and economic growth.”
U.S. Rep. Glenn Thompson, R-Howard, voiced his opposition to Mount Nittany’s sole hospital community designation removal in a letter to Oz on April 6. He wrote that Penn Highlands State College “does not appear to provide inpatient care to Medicare patients in the ordinary course of operations. It provides very limited inpatient services overall.”
Thompson believes that federal law “strongly favors” Mount Nittany’s sole community hospital designation, according to the letter. He has also “been engaged for months with local stakeholders and the CMS Administrator, working towards an equitable resolution,” according to Matt Brennan, Thompson’s chief of staff.
Higgins urged residents to contact Oz and Kennedy directly with their concerns, rather than state and federal representatives. To contact the Health and Human Services Center, call their toll-free call center at 1-877-696-6775.
This story was originally published June 16, 2026 at 3:08 PM.
