Bill would route hospital surcharge money to charity care payments

The health commissioner would pay eligible hospitals that apply for payments for their charity care adjustments. Eligible hospitals must be licensed in Minnesota, be nonprofit, and have filed a Medicare cost report. State treatment centers and services, federal Veterans Administration medical centers, and long-term acute care hospitals are excluded. Payments would come from money available in the charity care account. If available money is less than total charity care adjustments, each hospital’s payment would be based on its share of all reported adjustments. This section would take effect July 1, 2026. The commissioner would pay hospitals at least once each fiscal year.

The bill text would direct specified hospital surcharge collections to a charity care account in the special revenue fund. The surcharge applies to Minnesota hospitals other than federal Indian Health Service facilities and regional treatment centers. The surcharge shown in the text is 1.56 percent of net patient revenue, excluding net Medicare revenue. Federal Indian Health Service facilities and regional treatment centers are excluded from the surcharge. This section would take effect July 1, 2026, and apply to surcharges collected on or after that date.