LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 558 HLS 24RS 791
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: May 23, 2024 10:13 AM Author: TURNER
Dept./Agy.: LDH/Medicaid
Subject: Hospital Tax Analyst: Shawn Hotstream
MEDICAID EN SEE FISC NOTE SG RV Page 1 of 1
Provides relative to the Local Healthcare Provider Participation Program
Proposed law provides for a hospital tax assessed on hospitals in certain parishes. Proposed law provides for exclusions; the
tax applies to hospitals in any parish in which at least two institutional providers (as defined in the bill) are located, and a
parish may include or exclude any or all governmental institutional providers (defined in the bill) from imposed payments.
Proposed law provides that a hospital provider may be included in assessment payments imposed if the rural hospital and
parish enter into a mutual agreement to include the rural hospital.
Proposed law provides that each parish that collects a local hospital assessment payment shall create a local provider
participation fund. Monies in the fund is authorized to be used for certain purposes, including to 1) fund intergovernmental
transfers from a parish to the state to provide the nonfederal share (state match) for Medicaid payments for the benefit of
hospitals in the parish, and 2) to pay administrative expenses of a parish that participates (not to exceed 5%).
Proposed law provides that a parish that collects a local hospital assessment payment shall set the amount.
EXPENDITURES 2024-25 2025-26 2026-27 2027-28 2028-29 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total
REVENUES 2024-25 2025-26 2026-27 2027-28 2028-29 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. INCREASE INCREASE INCREASE INCREASE INCREASE
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total
EXPENDITURE EXPLANATION
Proposed law authorizes the hospital assessment revenues to be utilized for additional Medicaid payments for the benefit of
hospitals in the parish. However, there is no requirement in the bill to use the new match source (non-Federal share) for
Medicaid base rate increases, supplemental payments, or other payments.
REVENUE EXPLANATION
The amount of hospital assessment revenues that will be generated by the parish and transferred to LDH annually is
indeterminable. Each participating parish has the discretion to participate (opt-out provision), and to determine the amount
of the assessments per hospital within the parish. The amount of tax that can be assessed is limited to no more than 6% of
the aggregate net patient revenue of all hospitals taxed by the state with a similar purpose (including any other hospital
assessments).
Senate Dual Referral Rules House
x 13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
Patrice Thomas
x 13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Deputy Fiscal Officer


Statutes affected:
HB558 Original: 40:1(3), 40:7(A), 40:8(A)
HB558 Engrossed: 40:1(3), 40:7(A), 40:8(A)
HB558 Reengrossed: 40:1(3), 40:7(A), 40:8(A)
HB558 Enrolled: 40:1(3), 40:7(A), 40:8(A)
HB558 Act : 40:1(3), 40:7(A), 40:8(A)