The bill HB312 amends the Code of Alabama 1975 concerning the Hospital Provider Privilege Tax, primarily extending its duration until fiscal year 2028. Key changes include the deletion of references to fiscal years 2023, 2024, and 2025, and the insertion of fiscal years 2027 and 2028 in various sections. The assessment for privately operated hospitals is set at 6.00 percent of net patient revenue for fiscal year 2023, with provisions for annual reviews of hospital cost reports. The bill also modifies definitions, removing "Regional Care Organization" while retaining other relevant definitions, and aims to ensure effective funding mechanisms for hospitals in light of potential changes in Medicaid reimbursement due to federal law.

Additionally, the bill establishes a Hospital Assessment Account within the Health Care Trust Fund for all hospital assessments, removing previous mandates for intergovernmental transfers. It specifies that funds in this account cannot replace general revenues or be subject to budget cuts, provided they comply with the Alabama Constitution. The bill outlines the use of these funds for hospital payments and allows for the carryover of unspent funds. It also modifies the payment structure for hospitals, ensuring minimum payments based on previous fiscal year rates if the Medicaid Agency does not initiate payments by a specified date. The bill includes provisions for ceasing the hospital assessment under certain conditions and allows for contracting with alternate care providers if deemed beneficial for Medicaid enrollees. Overall, HB312 seeks to provide a stable funding framework for hospitals while adapting to the evolving healthcare landscape.

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