HB 1062 Summary

• Continues the Hospital Sustainability Program indefinitely by removing the December 31, 2023 repeal date and making the program permanent.

• Increases the maximum hospital sustainability fee from 5.5% to 6% of net patient service revenue for both inpatient and outpatient services.

• Changes the charitable hospital exemption threshold from 40% to 50% of net patient revenue, affecting which hospitals must participate in the fee program.

• Appropriates $100,000,000 from the hospital sustainability program special fund for fiscal years 2023-2024 and 2024-2025 to support Medicaid payments to private hospitals.

• Requires the department to consult with hospital trade associations when modifying fee assessments and adds penalties for non-payment at 2% instead of the previous "prime plus" rate.