Ohio Legislation Will Use Hospital Franchise Fee to Avoid Medicaid Payment Cuts

The Ohio House has included a hospital franchise fee in its budget bill (Sub. HB 153) to generate funds for the state's Medicaid program, thereby avoiding cuts to inpatient and outpatient reimbursement rates, according to a statement from the Ohio Hospital Association.

"Ohio hospitals appreciate a change the House made to ensure the Ohio Department of Job and Family Services will maintain current Medicaid inpatient and outpatient payment rates – using hospitals’ franchise fee to avoid payment cuts," said James R. Castle, president and CEO of the Ohio Hospital Association.

The OHA, however, voiced its disappointment the House did not remove a non-contracting mandate for hospitals and Medicaid managed care providers. The OHA says the non-contracting mandate "removes any incentive for [Medicaid managed care plans] to participate in meaningful negotiation with hospitals," according to the statement.

Read the OHA statement on the Ohio hospital fee.

Related articles on hospital provider fees:
Indiana Hospital Assessment Expected to Generate $100M in Federal Funds
Oklahoma Senate Approves Hospital Provider Fee
Connecticut's Governor Pushes for Hospital Tax

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