HI SB2467

Establishes the Hospital Sustainability Program and creates a special fund in the state treasury to receive revenue from hospital provider fees and federal Medicaid matching funds.

Requires the Department of Human Services to assess a hospital sustainability fee on all hospitals, not to exceed 3 percent of net patient service revenue, effective July 1, 2012.

Directs that at least 95 percent of fee revenue be used to enhance capitated rates for QUEST and QUEST Expanded Access plans to increase Medicaid hospital payments, with up to 5 percent allowed for state administrative expenses.

Requires hospitals to pay the monthly fee by the first of each month; imposes 5 percent penalty for late payments and authorizes remedies including withholding Medicaid reimbursements and license suspension for non-compliance.

Terminates the fee program if federal approval is not obtained, if state funding for hospital services is reduced, if funds are misused, or if federal matching funds become unavailable.