What to know about Mount Nittany’s loss of Medicare designation as sole community hospital

Mount Nittany Medical Center filed a federal lawsuit after losing its sole community hospital Medicare designation, a change the hospital estimates will cost about $9 million annually. Centre County and Pennsylvania officials are pushing back against the decision, warning of potential harm to local healthcare access.

Here are key takeaways:

• Mount Nittany sued top federal health officials Friday after being stripped of its sole community hospital designation, arguing the loss could cost roughly $9 million a year and jeopardize healthcare access in central Pennsylvania.
• The designation was revoked effective April 1 after the 2024 opening of Penn Highlands State College about four miles away, which the government deemed a “like hospital” despite Mount Nittany’s argument that it accounts for only 5.5% of its volume — short of the 8% threshold.
• Mount Nittany, a 260-bed facility, was designated a Level IV trauma center in January and offers more than 60 specialties, while Penn Highlands provides far fewer specialized services beyond a 10-bed emergency department.
• Centre County Commissioner Mark Higgins said officials “strongly disagree with the federal ruling,” warning the reimbursement funding shortfall will have to come from somewhere else.
• Sen. Dave McCormick, R-Pa., urged CMS to reconsider, writing that the decision could jeopardize critical federal support for healthcare delivery in central Pennsylvania and undermine access for seniors and rural patients.
• U.S. Rep. Glenn Thompson, R-Howard, voiced opposition in an April 6 letter to CMS Administrator Dr. Mehmet Oz, saying Penn Highlands State College “does not appear to provide inpatient care to Medicare patients in the ordinary course of operations.”

The summary points above were compiled with the help of AI tools and edited by journalists. The source reporting referenced above was written and edited entirely by journalists.