The bill amends the Code of Alabama 1975 to establish the hospital provider privilege tax as a permanent measure, replacing the temporary assessment period for state fiscal years 2026, 2027, and 2028 with a consistent 6.00 percent assessment on net patient revenue for privately operated hospitals. The calculation of net patient revenue will now be based on the fiscal year 2023 cost report, with annual updates mandated. Additionally, if any adverse effects on hospital Medicaid reimbursement are identified, the Medicaid Agency is required to report these findings to the Chair of the House Ways and Means General Fund Committee for potential legislative action.

The legislation also creates the Hospital Assessment Account within the Health Care Trust Fund, which will exclusively receive hospital assessments and related revenues, ensuring these funds are protected from budget cuts and cannot be used to replace general revenues. The bill removes the previous deadline for intergovernmental transfers from publicly and state-owned hospitals, allowing for ongoing transfers as needed. It further modifies provisions related to hospital access payments, making them available for the current fiscal year rather than being limited to specific years, and mandates quarterly payments for both inpatient and outpatient services. The bill will take effect on October 1, 2026, and includes a stipulation regarding federal financial participation for the Medicaid Agency's implementation.

Statutes affected:
Introduced: 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, 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-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, 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-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, 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