Miami Dade County Hospitals to receive additional funding to serve medically-needy, low income residents

Today, the Miami Dade County Board of County Commissioners unanimously approved an ordinance creating the Medicaid Hospital Directed Payment Program (DPP). The legislation, sponsored by Senator René García, will help provide financial relief to Miami-Dade hospitals that incur $524 million in unreimbursed Medicaid costs each year.

“I am so pleased that the County Commission unanimously supported this innovative mechanism for drawing down more funding to cover the costs of care for our low-income residents. Our local hospitals treat patients with professionalism and compassion. They deserve our support so they can meet the healthcare needs of Miami-Dade families,” said Mayor Daniella Levine Cava. “Special thanks to Senator René García and his team for spearheading this initiative.”

The newly-approved DPP is a Medicaid matching program that will help reduce this shortfall and will be funded through local non-ad valorem special assessments on local hospitals, so it will not impose additional burdens on either the state or local taxpayers.

“The passage of this ordinance will ensure that our community’s low-income patients benefit from enhanced healthcare services, and hospitals are able to improve their facilities and patient care through the creation of this program, which ensures Miami-Dade County and its residents receive their fair share of federal Medicaid funding,” stated Commissioner García.

In Florida, hospitals confront the harsh reality of the Medicaid shortfall, receiving only 60 cents in reimbursement for every dollar they spend providing Medicaid services. Miami area hospitals are especially challenged by this shortfall as they serve approximately 17% of the state’s Medicaid enrollees. When hospitals face staggering losses, they cannot provide the care necessary for the population. The hospital directed payment program provides the opportunity for hospitals in Miami-Dade to unlock federal funds to help close the reimbursement gap.