Case Study: Government Unexpectedly Withholds Payments to Medical Provider

In October 2014, Pennsylvania’s medical providers that receive payments from Medicaid woke up to an email from the Department of Public Welfare (“DPW”), the administration that provides care and support to Pennsylvania’s most vulnerable citizens. The email expressed that DPW, in preparation for the new fiscal year, is withholding payments on all submitted claims and is adjusting the time it typically pays from two to four weeks. To a provider, this email was horrifying as medical practices rely on government and commercial insurance payments to cover their accounts payable, payroll and operating costs.