The version of the bill that passed in a 68-26 vote, was updated from the original proposal that called to strip nonprofit status for hospitals charging more than 200% of the Medicare reimbursement rate, according to the report. County hospitals are exempt from the legislation.
The modified bill — which now moves to the Indiana Senate for further consideration — also provides a pathway for hospitals to regain nonprofit status if they come in compliance for 90 days.
The bill also proposes a new tax on hospitals that charge facility fees above a certain threshold, according to the report. The revenue from this tax would go toward Medicaid funding and rural healthcare initiatives. Critical access hospitals are exempt from this tax.
Indiana Hospital Association General Counsel Tim Kennedy said that the organization still has underlying concerns about the legislation, the modified bill is “moving in the right direction,” according to the report.
