Fiscal Note

SB0273 - Hospital Assessments

State Impact:
Enacting this legislation creates a new restricted special revenue fund to receive hospital assessments. It creates the assessment, which should generate $7,881,900 in FY 2010, $30,894,700 in FY 2011, and $34,926,300 in FY 2012. In FY 2011 $2,000,000 of the assessment is provided to the Department of Health to offset Medicaid mandatory expenditures and the reduction in hospital outpatient fees in FY 2011 with $1,000,000 provided annually in FY 2012 and FY 2013 to offset Medicaid mandatory expenditures. The legislation directs the Division of Health Care Financing to distribute the remaining revenue deposited into the new fund to hospitals. It is estimated that expenditures associated with the bill would be $7,881,900 from Restricted Special Revenue and $31,118,100 from Federal Funds in FY 2010, $30,894,700 from Restricted Special Revenue and $95,354,300 from Federal Funds in FY 2011, and $34,926,300 from Restricted Special Revenue and $86,630,500 from Federal Funds in FY 2012.

Individual, Business and/or Local Impact:
Enactment of this bill likely will not result in direct, measurable costs and/or benefits for individuals or local governments. Some private hospitals will experience increased revenues and some will experience decreased revenues.