HB 1368 Summary

• Amends the definition of "private hospital" to increase the charitable hospital exemption threshold from 40% to 50% of net patient revenue relative to operating expenses.

• Increases hospital sustainability fee caps from 5.5% to 6% of net patient service revenue for inpatient, outpatient, and aggregate fees.

• Requires the Department of Human Services to conduct good faith consultation and negotiation with the hospital trade association regarding fee rates and facility participation in the program.

• Repeals sunset dates of Act 217 (2012) and Act 123 (2014), making the hospital sustainability program permanent and permanently exempting it from central service and administrative expense assessments.

• Clarifies that remaining funds in the special fund shall be distributed to hospitals within six months if the fee is discontinued, and specifies conditions for discontinuation including loss of federal approvals or misuse of funds.