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Hospital Assessment for Medicaid Tax

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  • Hospital Assessment for Medicaid Tax

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Sections 40-26B-70 through 40-26B-88, Code of Alabama 1975.

Privately-operated hospitals in the State of Alabama that are funded through the Alabama Medicaid program are taxed according to their net patient revenue. The assessment is a cost of doing business as a privately-operated hospital in the State of Alabama.

Effective October 1, 2020, the rate is 6% of the net patient revenue. Net patient revenue shall be determined using data from each private hospital’s fiscal year ending 2020, 2021, or 2022 Medicare Cost report. 

Alabama Medicaid Agency.