Hillsborough County approves $359.8 million hospital assessment to boost Medicaid payments

The Hillsborough County Board of County Commissioners voted 5-0 at a special meeting to approve a non ad valorem special assessment intended to fund a hospital directed payment program (DPP) that county staff said would increase Medicaid managed care payments to local hospitals.

Kevin Wagner of the county’s Health Care Services Department described the DPP as "a supplemental program meant to bridge the difference between the Medicaid reimbursement rates and the actual cost of providing care," saying the assessment would be levied only on property owned or leased by hospitals. Wagner reported calculation inputs of "67,609 per available inpatient bed" and "1.17 of net outpatient revenue," and stated the total assessment amount as $359,799,513. He also said, "Payments made to the hospitals will not be passed along to patients of the assessed hospitals as a surcharge." Wagner said the resolution was noticed under the county’s local provider participation fund ordinance, "chapter 46, article 7 of the Hillsborough County code."

Commissioner Myers moved to approve the resolution after thanking staff for expediting the item; the chair said the motion was seconded by Commissioner Cohen. The clerk recorded the vote as "Motion carries 5 to 0." No public speakers addressed the board during the hearing; staff noted that Matthew King had signed up to speak but Mr. King waived his opportunity.

The measure authorizes the county to collect the assessment from assessed hospital properties and use the funds to enhance Medicaid payments to hospitals. The resolution, as described in the meeting, includes the county’s costs for development, levy, administration and collection of the assessment.

The board adjourned immediately after the vote.