Okaloosa County Commissioners approve amendment to Hospital Assessment Program

In Brief:

🏥 County commissioners approved an amendment to protect hospital Medicaid reimbursements amid potential federal changes.
💰 The program uses hospital-paid fees, with no cost to local taxpayers, to secure matching state and federal funding.
📜 Hospital leaders endorsed the amendment, which allows local hospitals to continue supporting low-income and uninsured patients.

CRESTVIEW — Okaloosa County commissioners voted unanimously on July 1 to adopt an amended rate resolution for the Local Provider Participation Fund (LPPF), ensuring local hospitals remain eligible for critical Medicaid-related reimbursements amid looming federal changes.

The decision allows the county to continue collecting non-ad valorem special assessments from private hospitals, including North Okaloosa Medical Center, HCA Florida Twin Cities, and HCA Florida Fort Walton-Destin.

These funds, entirely hospital-funded and with no cost to taxpayers, are transferred to the state and matched with federal dollars to support care for Medicaid and uninsured patients.

“This is an incredibly important program for the local hospitals here to continue to be able to treat Medicaid patients and provide that safety net for the local community,” said David Elliott of Adelanto Healthcare, the consulting firm representing the hospitals. “These are funds that are funded by the hospitals, so it comes at no cost to taxpayers or the county.”

County Attorney Lynn Hoshihara noted the amendment was prompted by proposed federal legislation that could cap provider assessment rates.

“It’s been requested and recommended that the board adopt an amended rate resolution in order to basically be grandfathered in with any new legislation that may impose a cap,” she said.

Commission Chairman Paul Mixon emphasized the importance of transparency and hospital support for the initiative, citing letters from hospital CEOs and board chairs that endorse the program.

“This is not a tax that we have come up with to put upon our hospitals,” Mixon said. “They asked for [it] themselves… for the purpose of really falling within the realm of the law and this opportunity that they’re able to use.”

Initially approved by the Board in September 2024 under Resolution 2024-157, the LPPF enables local hospitals to offset the historically low Medicaid reimbursement rate—approximately 60% of actual healthcare costs.

With no public opposition voiced during the hearing, the Board approved the amendment.