Relating to state psychiatric hospital designations
HB 4981 designates psychiatric hospitals treating exclusively civil and forensic patients (over 95% court-ordered civil/forensic cases from state custody) as "state-designated facilities" for Medicaid funding purposes. This change allows these specific hospitals to qualify for Medicaid reimbursement under federal rules, rather than being excluded as "state-designated" under current tax code. The bill amends tax provisions to ensure revenue collected from eligible hospitals (via a 0.75% tax on gross receipts) flows directly into a Medicaid funding account. It directly affects licensed psychiatric hospitals meeting the strict patient-mix criteria, enabling them to access Medicaid program funds they previously could not.
Bill status
passed
3 of 5 stages cleared
Introduction
Jan 2026
Committee Review
Mar 2026
House of Delegates Passage
Feb 2026
Senate Passage
Governor
Introduced Jan 29, 2026
Last action Mar 4, 2026
Maddy AI version diff · 1 comparison
What changed between versions
Introduced Version
→
Engrossed Version
·
3 edits
·
Feb 27, 2026
MINOR
The bill text was converted from a draft 'Introduced Version' to a finalized 'Engrossed Version' by removing website navigation elements and formatting artifacts while preserving the core legislative language. The substantive policy content regarding hospital taxes, definitions, and fund allocations remains unchanged.
Scope change
The scope of the bill's applicability is unchanged; the text now reflects the final version ready for enactment.
TECHNICAL
Removed website navigation links, headers, footers, and page numbers that were present in the draft version but are not part of the actual law.
Removed the explanatory note at the end of the draft version that described the bill's purpose.
Reformatted the text to remove line breaks and spacing artifacts, consolidating the bill into a continuous, readable format.
Floor votes · House of Delegates Feb 27, 2026
How they voted
93–0
Passed · 7 other
Total votes 100
Feb 27, 2026
D
Democratic9
88% Yea
R
Republican91
93% Yea
Vote distribution
All Yea
All Nay
Mixed
No data
Full legislative history
Actions timeline
Total actions
17
Key actions
2
Committee
5
Mar 4, 2026
Committee
To Health and Human Resources
upper
Mar 4, 2026
Committee
To Health and Human Resources then Judiciary
upper
Mar 4, 2026
Introduced
Introduced in Senate
upper
Feb 27, 2026
Lower · Passed
Passed House (Roll No. 224)
lower
Feb 23, 2026
Lower · Passed
Do pass
lower
Jan 29, 2026
Committee
To House Finance
lower
Jan 29, 2026
Introduced
Introduced in House
lower
Jan 29, 2026
Committee
To Finance
lower
1 primary · 2 co-sponsors
Sponsors
Role
Legislator
Party
State
District
P
Clay Riley
RRepublican
Co
Evan Worrell
RRepublican
Co
Vernon Criss
RRepublican
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