SB 1

Currently, hospitals must pay an annual assessment for the privilege of

operating in Wisconsin. Critical access hospitals, institutes for mental disease, and

psychiatric hospitals are exempt from the assessment. The total amount of the

assessment, which is apportioned among hospitals according to gross patient

revenues, is $275,445,100 for fiscal year 2008-09. Current law requires that each

hospital pay its assessment for fiscal year 2008-09 in two equal payments due on

March 31 and June 30, 2009. The assessment revenues are used to pay for hospital

and other services under the Medical Assistance program.

Also under current law, the Department of Health Services (DHS) must make

one-time payments in fiscal year 2008-09 to certain rural border hospitals that are

not critical access hospitals. The payments are either $250,000 or $500,000 per

hospital, depending on the portion of the hospital's revenue derived from the Medical

Assistance program.

This bill increases the total amount of the hospital assessment for fiscal year

2008-09 to $335,945,100, and provides that the two hospital assessment payments

for fiscal year 2008-09 need not be equal. The bill increases appropriations from the

hospital assessment fund and the Medical Assistance trust fund to permit

expenditure of the additional hospital assessment revenue; increases program

revenue funding for administration of the Medical Assistance program and the

hospital assessment; and decreases general purpose revenue funding for the Medical

Assistance program. The bill also increases the fiscal year 2008-09 payments to

rural border hospitals.