von Briesen Health Law Blog

Capitol Building

April 28, 2010

Wisconsin’s Governor Signs a Bill to Impose an Assessment on Critical Access Hospitals.

Wisconsin Governor Jim Doyle signed a bill on April 19, 2010 to establish an assessment on the gross patient revenues of critical access hospitals (“CAHs”).  A portion of the revenue collected under the assessment will be used to increase payments to CAHs under the Medical Assistance Programs, including Medicaid, largely by producing additional federal matching funds.  Consequently, the assessment will help offset a 10% cut in Medicaid payments implemented earlier this year, with payment increases beginning July 1, 2010.  The assessment will also help fund a rural physician residency assistance program and a loan assistance program for physicians who agree to practice in a rural area.  The specific amount of the assessment (a percentage of the gross patient revenues) is not set forth in the bill.  A similar assessment was implemented in Wisconsin last year for non-CAHs.  You can review the act establishing the assessment here.