Mount Nittany Medical Center is suing the federal government for canceling its status as a “sole community hospital,” saying the decision is "baseless" and will cost the hospital millions of dollars.
As the “sole community hospital” in the State College area, Mount Nittany qualified for Medicare reimbursement rates that can be higher. Mount Nittany was notified that with the opening of Penn Highlands Health in the State College area that it no longer qualifies. Mount Nittany is challenging the change in federal court.
A Mount Nittany spokeswoman said the decision “eliminates millions of dollars of critical Medicare funding that supported Mount Nittany Medical Center's role” providing inpatient and outpatient care in the community.
Congress started the “sole community” program in 1983 to support hospitals that are in isolated places and the only option for residents in a given area. Penn Highlands State College opened in 2024 as a campus of Penn Highlands Huntingdon.
U.S. Senator Dave McCormick is also weighing in, asking the Centers for Medicare & Medicaid Services to reconsider the decision.
In a June 3 letter to the Centers, McCormick asks whether the Penn Highlands State College facility should be considered a comparable "like hospital" under federal and state rules. In particular, he questions whether Penn Highlands State College meets the requirements for the number of inpatient days and beds, and whether the Centers used the data of Penn Highlands State College and Huntingdon combined when making its decision rather than just the State College data.
"Beyond the legal and regulatory considerations, I am also concerned about the practical consequences of this decision," McCormick wrote. "MNMC has historically provided the overwhelming majority of inpatient services in the region, including for Medicare beneficiaries. The loss of (the sole community hospital) designation 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 MNMC for essential inpatient services."
