Aquino law expands support for safety net hospitals

Aquino law expands support for safety net hospitals

SPRINGFIELD – To protect the stability of safety net hospitals, State Senator Omar Aquino championed a new law that will generate additional revenue for hospitals across the state.

"As a patient of Humboldt Park Health, a designated safety net hospital, and the representative of two additional safety nets, I have experienced firsthand the contributions of these hospitals to the integrity of our communities by ensuring the health of our neighbors,” said Aquino (D-Chicago). “With the updates to the Hospital Assessment Program, we are ensuring that hospitals continue to provide critical services to our most vulnerable."

The Illinois Hospital Assessment Program was established in 2003 to help ensure low-income patients have access to health care services. The program was extended and expanded in 2022 to improve cash-flow predictability for hospitals, tying greater funding to higher Medicaid utilization. The program is funded through a special tax on Illinois hospitals, which is then matched by federal funds and redistributed to hospitals based on the volume of the Medicaid patients they serve and their level of care.

The new law updates the rates under the Illinois Hospital Assessment Program to increase payments to hospitals. Under the updated rates, payments to hospitals will increase by approximately 54%. In addition to payments to hospitals, the tax provides funding to nursing homes and facilities that provide care to individuals living with developmental disabilities. The update will support increased payments to physicians and fund updates to the reimbursements for professional services provided by hospitals.

"Safety net hospitals are the backbone of our health care system, providing essential care to the most vulnerable members of our communities – regardless of their ability to pay,” said Aquino. “Increasing funding for these hospitals isn't just a moral imperative, it is a smart investment in public health, community stability and a more equitable health care system for all."

House Bill 2771 was signed into law Monday, June 16, and is effective immediately.

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