Hospital delivery system reform incentive payments

From the 2024 DOR Tax Exemption Study

82.04.43395(2)(b) - Hospital delivery system reform incentive payments Description Certain hospitals may take a B&O tax deduction for income from Medicaid delivery system reform incentive payments and the transformation project funding distributed by the Health Care Authority through Medicaid demonstration project number 11-W-00304/0. The Centers for Medicare and Medicaid Services approved the project in accordance with Sec. 1115(a) of the Social Security Act. To claim this deduction, a hospital must be owned by a municipal corporation or political subdivision, or must be affiliated with a state institution. Purpose To lower costs for hospitals and managed care organizations. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.000 $0.000 $0.000 $0.000 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this deduction would not increase revenues because currently no exemption taxpayers use it. Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.000 $0.000 $0.000 Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions - No taxpayers currently use this deduction. We expect no usage during the