H.B. 474 Summary

• Extends the hospital sustainability program through December 31, 2023, with related statutory provisions repealing June 30, 2024 (previously scheduled to expire June 30, 2021).

• Increases the maximum hospital sustainability fee from 4 percent to 5.5 percent of net patient service revenue for both inpatient and outpatient care services.

• Extends the payment deadline for hospitals to remit fees from 30 days to 60 days after the end of each calendar month.

• Increases the minimum percentage of fee revenue used for medicaid payments from 88 percent to 90 percent, and adds new allowable uses including supportive housing, behavioral health, vaccinations, preventive health, and home and community-based services.

• Adds a net benefit requirement ensuring private hospitals receive aggregate benefits no less than those provided in fiscal year 2021, with consultation between the department and hospital trade association if material changes in factors affecting calculations occur.