The bill amends Section 23-17-38.1 of the General Laws regarding the licensing fees for hospitals in Rhode Island. It imposes a hospital licensing fee for state fiscal year 2026 against the net patient-services revenue of every non-government owned hospital for their first fiscal year ending on or after January 1, 2024. The fee structure will consist of three tiers based on inpatient and outpatient net patient-services revenue. The executive office of health and human services, in consultation with the tax administrator, will identify the hospitals in each tier by July 15, 2025, and notify them of their assigned tier by August 1, 2025.

Additionally, the bill includes provisions for state-directed managed care payments to hospitals for inpatient and outpatient services, which will be implemented in accordance with existing regulations. It specifies that any funds collected pursuant to this provision in excess of $90 million will be used to increase Medicaid reimbursement for hospitals under managed care and fee-for-service programs, subject to approval by the federal Centers for Medicare and Medicaid Services.

The bill also makes several deletions and insertions to the existing law, including the removal of specific percentages related to hospital licensing fees for previous fiscal years and the addition of new provisions regarding the collection and administration of these fees. The act is set to take effect upon passage.

Statutes affected:
848: 23-17-38.1