HB4543 Summary

• Extends hospital provider assessments on inpatient and outpatient services through State Fiscal Year 2024 (previously set to expire July 1, 2020), with annual assessments based on non-Medicaid gross revenue.

• Establishes a hospital transformation program in three phases to provide financial assistance to hospitals in high-need areas and those affected by health disparities, with at least $262.9 million annually allocated in Phases 1-2 and ongoing funding in Phase 3.

• Requires managed care organizations to pass through increased capitation payments to hospitals and submit monthly reports on hospital payments, with MCOs obligated to expend amounts equivalent to increased payments to support hospital services.

• Removes provisions allowing automatic Freestanding Emergency Center licensing for hospitals that discontinued inpatient services under a specific transformation review approval process.

• Grants the Department of Healthcare and Family Services emergency rulemaking authority to implement assessment and payment changes, with rules repealing on January 1, 2026.