The Greene County Board of Commissioners on July 3 passed a resolution establishing a hospital tax assessment to participate in the state'authorized rural hospital tax pilot program and authorized the county administrator to sign memoranda of understanding with Soin Medical Center and Greene Memorial Hospital.

County Administrator explained the program at a public hearing, saying, "Basically, there are no tax dollars involved" and describing it as "a self assessment by the hospital on themselves that is sent to Medicaid that allows them to receive a higher Medicaid reimbursement rate." The board opened and closed the public hearing before taking action.

The board'level approval is required each year for the county to facilitate the hospital assessment and collection process. The administrator told commissioners that the county treasurer and auditor will participate in invoicing and collection activities tied to the assessment. The administrator also said the county may charge up to $150,000 as an administrative fee to bring some dollars back to the county.

Commissioners discussed how higher Medicaid reimbursement could, in the long term, reduce pressure on private insurance premiums because hospitals often charge private payers more to offset low Medicaid rates. The county administrator clarified that the change affects Medicaid reimbursement specifically.

Commissioner May moved to pass the resolution establishing the hospital tax assessment and to authorize the county administrator to enter into memoranda of understanding with the two hospitals; the motion was seconded and carried with the recorded votes of the commissioners present being "Aye." The board approved the motion and directed the county administrator to proceed with the MOUs.

The resolution does not itself change county general fund taxes; the county administrator characterized the action as an administrative facilitation of the hospitals' participation in the state pilot and said annual board approval will be requested going forward.

The board concluded the public hearing and returned to other business.