The revenue collected from the public health assessment fee will be deposited into a newly established local public health department fund. This fund is designated to support local public health initiatives, emergency preparedness, and health improvement efforts such as combating health issues like obesity, tobacco use, and infant mortality. The bill emphasizes that these funds will not be used for the state's Medicaid program, thereby delineating the scope and purpose of the revenue generated.
Senate Bill 387 introduces a public health assessment fee targeted at nonprofit hospitals in Indiana, exempting county hospitals from this requirement. The bill mandates that the state department of health assess the fee based on total hospital net patient revenues, with the goal of generating $120 million in state fiscal year 2024 and $230 million for each subsequent fiscal year. The specifics of the fee's rate will be determined by the state department after a review by the budget committee, ensuring a structured approach to this new revenue stream.
A major point of contention regarding SB 387 is the imposition of this fee on nonprofit hospitals, which some stakeholders may view as an additional financial burden on healthcare providers already operating with tight margins. While proponents of the bill argue that the fees are essential for enhancing public health infrastructure, critics might contend that such financial responsibilities could detract from hospitals' ability to provide community services. Furthermore, there is concern about the bill's potential impact on patients, given that it explicitly states that the fee cannot be passed on to patients or hospital consumers.