State Court Rules Mcare funds mishandled

On April 15, Commonwealth Court ruled in favor of the Pennsylvania Medical Society (PAMED) and The Hospital and Health System Association in two landmark legal actions for physicians

The court ruled that the state should not have diverted money removed from two funds related to the state-run liability insurance prorgram for physicians and hospitals to help solve its multibillion-dollar budget shortfall.

One lawsuit contended that the administration wrongly transferred $100 million from the Mcare Fund to the state's general fund.

In the second lawsuit, the court found that the commonwealth improperly failed to transfer up to $616 million from the Health Care Provider Retention Account to the Mcare Fund to pay for premium relief enacted by the General Assembly between 2003 and 2007.

The total amount taken by the state to help balance its budget is estimated at $566 to $716 million.

The Rendell administration has said it will appeal the ruling.