Subject:
Title
Approval of a Rate Resolution to Impose Non-Ad Valorem Special Assessment for the State’s Medicaid Managed Care for Direct Payment Program for Local Hospitals
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Fiscal Impact:
The Non-Ad Valorem Special Assessment Roll to be imposed in the amount of $74,808,006, levied, collected and enforced solely on private for profit and non-profit local hospitals holding a right of possession and right of use to real property through ownership or lease hold interest in Brevard County. The assessment rate to be levied against each assessed property shall be 2.71% of net inpatient revenue and 9.19% of net outpatient revenue.
The County’s administrative costs associated with the implementation, collection and enforcement of the Assessment will be funded by the private for-profit and non-profit hospitals through the Assessment program, in the amount of $150,000.
Dept/Office:
Budget Office
Requested Action:
Recommendation
It is requested that the Board of County Commissioners:
1. Adopt a Rate Resolution that will impose non-ad valorem special assessments against private for-profit and non-profit local hospitals holding a right of possession and right of use to real property in Brevard County for the State’s Medicaid Managed Care Fund for Direct Payment Program,
2. Authorize the Chair to sign the Resolution,
3. Authorize the County Manager to execute any necessary budget change requests necessary to implement the non-ad valorem special assessment program for the Medicaid Managed Care for Direct Payment Program for local hospitals and to execute the Letter of Agreement with the State of Florida authorizing the County’s participation to this program.
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Summary Explanation and Background:
Representatives from the private for-profit and non-profit local hospitals (Local Hospitals) have requested the County consider the imposition of a non-ad valorem special assessment (Assessment) against real property owned by their Local Hospitals.
The Board on May 18, 2021 adopted Ordinance 21-14 establishing a non-ad valorem assessment program which Assessments will be used to benefit the assessed properties for local services provided by the private for-profit and non-profit hospitals in Brevard County. The Medicaid Managed Care Hospital Direct Payment program is a federally approved program that permits the State of Florida to access federal funds through Intergovernmental Transfer to direct the federal funds for managed care plan expenditures to hospitals to offset the hospitals’ Medicaid shortfall.
The Ordinance provides the method of assessing these properties using the non-ad valorem special assessment as specified in Section 197.3631, Florida Statutes. The noticing requirements of the Ordinance were met, and all property owners were mailed notices of the Assessment on June 13, 2025, and the assessment was advertised on June 18, 2025.
Funds generated as a result of the assessment shall be held in a separate fund called the local provider participation fund, and shall be available to be used only to:
1. Provide to the State Agency for Healthcare Administration the non-federal share for Medicaid payments to be made directly or indirectly in support of hospitals serving Medicaid beneficiaries and
2. Reimburse the County for administrative costs associated with the implementation of the assessment authorized by this division, as further specified in the assessment resolution.
Attached is the Non-Ad Valorem Assessment Roll that will be imposed against the real property owned by private for-profit and non-profit local hospitals in Brevard County. The Assessments will be mailed to the real property owners and become due upon receipt.
Clerk to the Board Instructions:
Please provide copies of the executed Rate Resolution to the County Managers Office, County Attorney Office and the County Budget Office