The bill HB312 amends various sections of the Code of Alabama 1975 to extend the Hospital Provider Privilege Tax until fiscal year 2028. Key modifications include the deletion of references to fiscal years 2023, 2024, and 2025, and the insertion of fiscal years 2027 and 2028 concerning assessments on privately operated hospitals, while maintaining the assessment rate at 6.00 percent of net patient revenue. The bill also updates definitions related to hospital operations and Medicaid reimbursement, removing terms like "Regional Care Organization" and "Regional Care Organization Capitation Payment," while clarifying others. Additionally, it mandates that the Medicaid Agency report any adverse impacts on hospital Medicaid reimbursement to the Chair of the House Ways and Means General Fund Committee for potential amendments.

Furthermore, HB312 establishes a Hospital Assessment Account within the Health Care Trust Fund for depositing all hospital assessments, ensuring these funds cannot replace general revenues or be subject to budget cuts, in compliance with the Alabama Constitution. The bill extends the timeline for intergovernmental transfers by publicly owned and state-owned hospitals to the Medicaid Agency until September 30, 2028, and modifies the payment structure for hospitals based on fiscal performance. It also outlines conditions under which the hospital assessment will cease and emphasizes that access payments cannot offset other Medicaid payments for hospital services. Overall, the bill aims to streamline funding for hospitals while ensuring compliance with federal regulations and adequate support for hospital services in Alabama.

Statutes affected:
Introduced: 40-26B-70, 40-26B-71, 40-26B-73, 40-26B-77, 40-26B-79, 40-26B-80, 40-26B-81, 40-26B-82, 40-26B-84, 40-26B-88
Engrossed: 40-26B-70, 40-26B-71, 40-26B-73, 40-26B-77, 40-26B-79, 40-26B-80, 40-26B-81, 40-26B-82, 40-26B-84, 40-26B-88
Enrolled: 40-26B-70, 40-26B-71, 40-26B-73, 40-26B-77, 40-26B-79, 40-26B-80, 40-26B-81, 40-26B-82, 40-26B-84, 40-26B-88