The bill, HB312, amends various sections of the Code of Alabama 1975 to extend the Hospital Provider Privilege Tax until fiscal year 2028. It specifically modifies Sections 40-26B-70, 40-26B-71, 40-26B-73, 40-26B-77.1, 40-26B-79, 40-26B-80, 40-26B-81, 40-26B-82, 40-26B-84, and 40-26B-88, deleting references to fiscal years 2023, 2024, and 2025, while inserting fiscal years 2027 and 2028. The assessment rate remains at 6.00 percent of net patient revenue, which will be reviewed annually. The bill also updates definitions related to hospital operations and Medicaid reimbursement, removing the definition of "Regional Care Organization" and clarifying terms such as "net patient revenue" and "uncompensated care survey." 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.

Additionally, HB312 establishes a designated Hospital Assessment Account within the Health Care Trust Fund for hospital assessments, ensuring that these funds cannot replace other general revenues or be subject to budget cuts, in compliance with the Alabama Constitution. The bill extends the deadline for intergovernmental transfers from publicly owned and state-owned hospitals to September 30, 2028, and outlines conditions under which the hospital assessment will cease. It also modifies regulations regarding regional care organizations, allowing organizations with probationary or full certification to apply for development without specific deadlines. Furthermore, it updates reimbursement requirements for alternate care providers and stipulates that the assessment will cease if deemed impermissible under federal law. The act is set to take effect on October 1, 2025.

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