Managed Care Report

• The Health Care Financing Administration (Washington, DC) said that certain hospitals in New Jersey will receive additional Medicare payments totaling several hundred million dollars. The payments relate to a technical issue of how to calculate New Jersey hospitals’ Medicare disproportionate share hospital reimbursement. The decision represents between $250 million and $370 million spread across approximately 60 of the state's hospitals.

• Sierra Health Services received a hold rating with a moderate risk from Prudential Securities. The managed care company said last week that it will take a charge of $40 million to $47 million in 4Q99, Prudential said.