Florida Legislative Panel Approves $10 Billion for Hospitals Serving Poor
State panel clears way for massive hospital funding while lawmakers prepare for special budget session starting May 12.
TALLAHASSEE, FLORIDA — The Legislative Budget Commission approved more than $10 billion in healthcare funding for Florida hospitals that serve poor, elderly, and disabled patients who rely on Medicaid, despite lawmakers not returning to work on the state budget until a special session beginning May 12.
The joint House-Senate panel on Tuesday approved two budget amendments allowing the state Agency for Health Care Administration to distribute the funding allocation. The approval comes as hospitals across the state face mounting pressure to provide care for vulnerable populations.
Direct Payment Program Receives Nearly $8 Billion
The commission agreed to allow the state to spend nearly $8 billion for the Direct Payment Program, known as DPP. The Agency for Health Care Administration has received near-final approval from the federal Centers for Medicare and Medicaid Services for the funding.
According to AHCA’s website, DPP funding helps hospitals cover inpatient and outpatient care costs. The program specifically bridges the funding gap between what hospitals receive for treating managed-care enrollees and the actual cost of providing that care.
The DPP operates through a combination of local government funds transferred to the state, which are then used to draw down matching federal dollars.
Federal Approval Expected Soon
AHCA Deputy Secretary for Medicaid Brian Meyer told the commission that final approval of the funds is expected imminently. When commission member Sen. Lori Berman asked about timelines, Meyer expressed optimism about the pending federal decision.
“We are hopeful that final approval will come any day,” Meyer said during the commission meeting. “Certainly, the hope is that we can get approval any day now because that’s what we’re hopeful for and we can move forward with issuing these payments.”
The approval is tied to paperwork already submitted to federal authorities, Meyer explained to the panel.
Additional Healthcare Funding Approved
The DPP funding was not the only healthcare allocation the commission authorized AHCA to spend this week. The panel approved additional healthcare funding as part of the broader budget amendments, bringing the total healthcare allocation to more than $10 billion.
The funding approval comes as Florida hospitals continue to face financial challenges while serving patients enrolled in Medicaid, the joint state-federal healthcare safety net program. The program serves as a resource for low-income residents, elderly patients, and individuals with disabilities who might otherwise lack access to healthcare services.
The Legislative Budget Commission’s action ensures that hospitals across Florida will receive funding to continue providing care to the state’s most vulnerable populations, even as lawmakers prepare for the upcoming special session to finalize the state budget.
