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Committee advances bill to create hospital-directed payment program to stabilize hospital finances
Summary
Senate File 2413, proposing a hospital assessment to finance a state Medicaid directed payment program (DPP) intended to stabilize hospital finances and draw federal Medicaid funds, was passed without recommendation and referred to Health and Human Services after testimony from the Minnesota Hospital Association and sponsor Senator Mann.
Senate File 2413, which would establish a Directed Payment Program (DPP) funded by an assessment on Minnesota hospitals to draw additional federal Medicaid dollars, was passed without recommendation by the Senate Taxes Committee on April 1 and referred to the Senate Committee on Health and Human Services.
Senator Mann said the assessment would be placed only on hospitals and not on other health-care providers, and that the DPP could attract roughly $1 billion in additional federal Medicaid funding to stabilize hospitals that have struggled financially since the pandemic. "This will be…
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