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Board sets a 2.45% Local Provider Participation Fund assessment on local hospitals
After a public hearing, the Board set the mandatory payment on local hospitals under the District's Local Provider Participation Fund (LPPF) at 2.45% for the state fiscal year ending August 31, 2021, up from 2.22% the year before. Staff said the rate would produce $20,230,863 in assessments, used for intergovernmental transfers that draw Medicaid supplemental payments. The vote was 7-0.[1]
What the sources say
- ✓ Verified
Staff said the 2.45% rate (2.22% the prior year) would produce $20,230,863 in assessments with an anticipated net intergovernmental transfer of $20,170,523, payable in four installments in 2021. A representative of the private hospitals said the dollars go a long way with Medicaid supplemental payments. [1]
- Lppf rate
- 2.45%
- Assessments
- $20,230,863
- ✓ Verified
The Deputy City Attorney told the board in August 2020 that under state statute LPPF money may be used for intergovernmental transfers, costs associated with indigent care and administrative expenses. The Assistant City Manager said the LPPF budget is set at the 6% maximum so no budget amendment would be needed. [2]
