Hospitals, private hospital assessment and Medicaid funding program sunset clause removed

HB 232 permanently extends a 6% tax on net patient revenue from privately operated hospitals in Alabama, which currently funds Medicaid payments but was scheduled to expire on September 30, 2028. This tax, described as a "cost of doing business" for these hospitals, requires them to pay the assessment annually to support Medicaid hospital payments. Funds collected go into the Hospital Assessment Account, which must be used exclusively for hospital payments and cannot replace other state Medicaid funding. The bill removes the sunset clause, making the tax permanent for all privately operated hospitals in the state.