HB 976 Summary

• Extends the Hospital Sustainability Program through December 31, 2023, allowing hospitals to collect provider fees on patient services to draw down additional federal Medicaid matching funds.

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

• Requires at least 90% of collected fees to be used for Medicaid enhancements including capitated rate increases, disproportionate share hospital payments, upper payment limit pools, quality/access incentive programs, and supportive services like behavioral health and preventive care.

• Guarantees that aggregate net benefit to private hospitals shall not be less than the fiscal year 2020-2021 level, with required written agreement between the Department of Human Services and hospital trade association if material changes occur.

• Appropriates $100,000,000 from the Hospital Sustainability Program Special Fund for each of fiscal years 2021-2022 and 2022-2023.