Hospital Quality Incentive Amendments

SB 305 modifies how Utah calculates Medicaid hospital provider assessments and integrates quality incentive arrangements into Medicaid accountable care organization payment rates. It directly affects Utah hospitals serving Medicaid patients by requiring them to meet specific quality standards to qualify for additional payments. Key provisions include using funds from the Hospital Provider Assessment Expendable Revenue Fund to support quality strategies (capping annual spending at $211,300) and monitoring how accountable care organizations distribute funds to hospitals (capping annual spending at $200,000). The bill takes effect on May 6, 2026, and updates existing Medicaid payment structures without appropriating new state funds.