SB 1503 Summary

• Establishes a tax on hospital net revenue at 6% for inpatient services and a variable rate for outpatient services (July 1, 2017 - July 1, 2019), then unified at 384 million dollars divided by total audited net revenue thereafter; hospitals must submit audited financial information by January 1, 2018.

• Imposes quarterly fees on nursing homes ($21.02 per resident day) and intermediate care facilities ($27.26 per resident day) beginning July 1, 2017, with exemptions available for certain continuing care facilities and financially distressed hospitals pending federal CMS approval.

• Increases hospital Medicaid reimbursement rates effective January 1, 2018 (31.65% increase for inpatient DRG base rates; 6.5% increase for outpatient APC conversion factors) and establishes supplemental payment pools totaling $598.4 million (FY 2018) and $496.3 million (FY 2019).

• Modifies elderly renter tax relief by transferring program administration from municipalities to the state; adjusts income limits and grant amounts to address housing affordability for seniors; establishes state-level processing of applications.

• Reduces General Fund appropriations through labor concessions ($700 million for FY 2018; $867.6 million for FY 2019), targeted savings, and hiring restrictions while maintaining education, corrections, and social services funding levels.