Rhode Island 2025 Regular Session

Rhode Island Senate Bill S0848

Introduced
3/19/25  
Refer
3/19/25  
Report Pass
6/2/25  

Caption

Imposes a hospital licensing fee for fiscal year 2026 against net patient-services revenue of every non-government owned hospital for the hospital’s first fiscal year ending on or after January 1, 2024.

Impact

The proposed bill is positioned to significantly affect state healthcare economics, as the collected fees will contribute to the general fund and can also be directed towards increased Medicaid reimbursements for hospitals. Specifically, excess funds—those surpassing the $90 million threshold—are earmarked for improving payment rates to hospitals under the Medicaid program, thereby enhancing the financial viability of healthcare providers serving vulnerable populations. The bill's outlines suggest a strategic move to bolster local hospitals' operational capacity while attempting to stabilize funding channels within the broader state healthcare system.

Summary

Senate Bill S0848 establishes a hospital licensing fee aimed at non-government owned hospitals in Rhode Island, calculated based on their net patient-services revenue. This fee, applicable for the fiscal year 2026, consists of three tiers, adjusting the financial obligations based on the volume of inpatient and outpatient services rendered. The executive office of health and human services is tasked with determining the appropriate tier for each hospital based on predefined revenue thresholds. This tiered structure was designed to ensure that hospitals contribute fairly based on their financial capabilities while offering some relief to those serving high volumes of low-income patients.

Contention

As with many legislative changes, S0848 might face scrutiny and debate. Concern stems from potential disparities in how these fees impact smaller hospitals versus larger institutions, especially those categorized within Tier 1 or Tier 2. Critics may argue that the fee structure could exacerbate financial pressures on hospitals already operating under tight margins. Moreover, the requirement for hospitals to comply with fee payment and reporting may also raise questions regarding administrative burdens and the feasibility of implementation, particularly for facilities that struggle with financial reporting accuracy.

Companion Bills

No companion bills found.

Previously Filed As

RI S2751

Amends Article 9 of the state budget and various provisions relative to hospital licensing fees, would redefine base year for purposes of calculating disproportionate share payments for fiscal years.

RI H8210

Amends Article 9 of the state budget and various provisions relative to hospital licensing fees, would redefine base year for purposes of calculating disproportionate share payments for fiscal years.

RI H5200

Making Appropriations For The Support Of The State For The Fiscal Year Ending June 30, 2024

RI H7225

MAKING APPROPRIATIONS FOR THE SUPPORT OF THE STATE FOR THE FISCAL YEAR ENDING JUNE 30, 2025

RI H7702

Requires hospitals to screen uninsured patients for public assistance and creates a pilot program for out of hospital service upon expiration of similar federal program.

RI S0691

Senate Resolution Proclaiming March 2, 2023, To Be "national Hospitalist Day" In The State Of Rhode Island

RI S2061

Allows a modification to federal adjusted gross income for all social security income for tax years beginning on or after January 1, 2025.

RI S0104

Determination Of Need For New Healthcare Equipment And New Institutional Health Services -- Licensing Of Healthcare Facilities -- The Hospital Conversions Act

RI H7486

Amends the capital gains tax rates and holding period from 5 years to 1 year. Imposes a non-owner occupied tax on homes assessed at more than $1,000,000.

RI S2596

Amends the capital gains tax rates and holding period from 5 years to 1 year. Imposes a non-owner occupied tax on homes assessed at more than $1,000,000.

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