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Senator Garcia passed with unanimous support from the Board of County Commission, the expansion of Hospital Medicaid Direct Payment Program. In 2021, Miami-Dade County launched the Medicaid Hospital Directed Payment Program (DPP). This program has significantly benefited nonpublic hospitals by unlocking federal matching dollars through annual mandatory payments, helping to bridge the reimbursement gap for Medicaid services.
Key advancements in the program include:
- Expansion of Scope: Initially focused on a single Medicaid payment area, the program now addresses broader needs, including medical education and charity care.
- New Supplemental Payment Programs: The program will now incorporate the Low-Income Pool Supplemental Payment Program, Florida Cancer Hospital Supplemental Payment Program, and Indirect Graduate Medical Education Supplemental Payment Programs. This expansion allows private hospitals to draw additional Medicaid funding.
- Future Readiness: These initiatives position Miami-Dade County’s healthcare providers to maximize available federal funds, enhancing their capacity to serve the community.
The need for this program is particularly acute in Miami-Dade County, home to 17 percent of Florida’s Medicaid enrollees. Hospitals here face a significant Medicaid reimbursement shortfall, annually providing an estimated $524 million in unreimbursed services. The DPP helps mitigate these losses, ensuring hospitals can continue to offer essential care and maintain their facilities. These new programs could generate more than an additional $100 Million for our local hospitals.
“As the former chair of the Florida Senate Health Care Appropriations Committee, I’ve seen firsthand the important role our hospitals play in the well-being of our community. This expansion of the Medicaid Direct Payment Program will ensure we can provide the best care for our most vulnerable patients,” stated Senator Garcia.
The program, approved by the federal government in April 2021, leverages local special assessments to secure federal matching dollars, significantly supporting the county’s hospitals.
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