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County OKs hospital assessment to unlock federal Medicaid match for local hospitals
Summary
By unanimous vote Lake County approved a hospital assessment to generate state match dollars that increase Medicaid reimbursements to local hospitals, officials said the change will help close reimbursement gaps for indigent and Medicaid care.
Lake County commissioners on June 24 unanimously approved a Local Provider Participation Fund assessment on private hospitals to generate state matching dollars that increase Medicaid reimbursement to hospitals serving low‑income and special‑needs patients.
The county ordinance directs a non‑ad valorem assessment on participating hospitals; county staff and hospital representatives said the assessment is used as the state share to draw federal Medicaid matching funds so hospitals receive higher reimbursements for uncompensated care. “Historically, hospitals in Florida when providing this care are not getting reimbursement to actually cover the cost,” Colleen Ernst, an advisor working with hospitals, told the board.
Why it matters: County officials said the change improves reimbursements for medically necessary care provided to low‑income residents in categories such as pregnant women, children and disabled adults. Staff estimated the proposed assessment rate at $39,535 per available bed, producing a pool of about $39 million in assessments that, combined with federal funds, would increase the built‑in Medicaid reimbursement rate used locally.
Who spoke: Phil Braun of UF Health Central Florida and Matt Leather of Orlando Health thanked the board for support and said the program helps hospitals bridge funding gaps for Medicaid and indigent care. Staff and hospital representatives said the program does not create a citizen tax or patient surcharge; the assessment is taken from hospital revenues and used to leverage federal dollars.
Board action and next steps: The board voted unanimously to adopt the assessment ordinance so Lake County hospitals can participate. Staff said the ordinance aligns Lake County with other Florida jurisdictions taking similar steps and that including newly opened hospitals required timely action.
Implementation notes: Participating hospitals must be included in a broad‑based assessment for federal matching; staff said new hospitals that recently opened (Encompass Rehab of Clermont and PAM Health Hospital) now have cost reports and were included. The county will collect assessments and participate in the state’s Medicaid funding mechanism; staff will return as needed for implementation steps and to report on impacts.
