Reducing Medicaid and Local Taxation to Florida Not-for Profit Hospitals

ReducingMedicaid and Local Taxation to Florida Not-for Profit Hospitals

ReducingMedicaid and Local Taxation to Florida Not-for Profit Hospitals

Medicaidis the health insurance for low-income families and children. InFlorida, Medicaid covers one of four children, and 48% of all thepregnant women (Gokhale &amp Cato Institute, 2011). Medicaid isgenerally funded by the federal and state governments. Majority ofthe state money originate from the revenue, which is generated fromthe revenue from county governments and local communities. As aresult of this, one major issue is that not-for profit hospitals inFlorida are pinched from the state and the pressures that result fromthe low budget of the federal (Gokhale &amp Cato Institute, 2011).

Fromthe above low budget pressure from the state and federal government,it is evident that Florida risks losing low income pool, which is aseparate section of the money by the federal government after theactual budget. This separate allocation is used to treat uninsuredpatients. The issue remains that as much as the state and federalgovernment is still willing to arrive at a deal to continue fundingFlorida not-for profit hospitals, which deals with treatment ofunder-insured, Medicaid, and uninsured patients, it remain unclearwhat could happen when no agreement is arrived at. According toGokhale &amp Cato Institute (2011), expansion of Medicaideligibility would still be required to cover poor Floridian’s someof the healthcare costs, but the issue could remain, since the statewould still be forced to cover funds for safety hospitals sinceMedicaid pays consistently less costs than is needed.

Thecommission responded to the issue but there are a few recommendationsthat were not taken into account. First, it was overlooked that thepublic hospitals be turned into indigent healthcare districts withthe intention of funding the healthcare based on priorities at thelocal stage. Secondly, sunset review was overlooked that recommendedprovision by the public hospital’s taxing authority over a periodof 12 years. Finally, the recommendation overlooked was related withthe governance of the hospital. This demanded that when this happens,the hospital’s membership should be separated entirely from theprivate corporation of the hospital (Gokhale &amp Cato Institute,2011).

Therationale behind this is that significant concerns had been raisedthat had since raised concerns of the physicians and the hospitalsover levying of taxes in support of the medical practices in thehospital. While the sunset review, for example, was found out to haveconsidered any impact it may have to the ability of the hospital toobtain finances and access to bond market, it provided no specificson the manner it could be accomplished. However, the commissionemphasizes that it could not limit itself to the solutions that couldfit all.


Gokhale,J., &amp Cato Institute. (2011). The new health care law`s effect onstate Medicaid spending: A study of the five most populous states.Washington, D.C: Cato Institute.