Fla. Stat. 409.911
Disproportionate share program
(1)
DEFINITIONS.—As used in this section and the Florida Hospital Uniform Reporting System manual:“Adjusted patient days” means the sum of acute care patient days and intensive care patient days as reported to the Agency for Health Care Administration, divided by the ratio of inpatient revenues generated from acute, intensive, ambulatory, and ancillary patient services to gross revenues.“Actual audited data” or “actual audited experience” means data reported to the Agency for Health Care Administration which has been audited in accordance with generally accepted auditing standards by the agency or representatives under contract with the agency.“Charity care” or “uncompensated charity care” means that portion of hospital charges reported to the Agency for Health Care Administration for which there is no compensation, other than restricted or unrestricted revenues provided to a hospital by local governments or tax districts regardless of the method of payment, for care provided to a patient whose family income for the 12 months preceding the determination is less than or equal to 200 percent of the federal poverty level, unless the amount of hospital charges due from the patient exceeds 25 percent of the annual family income. However, in no case shall the hospital charges for a patient whose family income exceeds four times the federal poverty level for a family of four be considered charity.“Charity care days” means the sum of the deductions from revenues for charity care minus 50 percent of restricted and unrestricted revenues provided to a hospital by local governments or tax districts, divided by gross revenues per adjusted patient day.“Hospital” means a health care institution licensed as a hospital pursuant to chapter 395, but does not include ambulatory surgical centers.“Medicaid days” means the number of actual days attributable to Medicaid patients as determined by the Agency for Health Care Administration.(a)
“Adjusted patient days” means the sum of acute care patient days and intensive care patient days as reported to the Agency for Health Care Administration, divided by the ratio of inpatient revenues generated from acute, intensive, ambulatory, and ancillary patient services to gross revenues.(b)
“Actual audited data” or “actual audited experience” means data reported to the Agency for Health Care Administration which has been audited in accordance with generally accepted auditing standards by the agency or representatives under contract with the agency.(c)
“Charity care” or “uncompensated charity care” means that portion of hospital charges reported to the Agency for Health Care Administration for which there is no compensation, other than restricted or unrestricted revenues provided to a hospital by local governments or tax districts regardless of the method of payment, for care provided to a patient whose family income for the 12 months preceding the determination is less than or equal to 200 percent of the federal poverty level, unless the amount of hospital charges due from the patient exceeds 25 percent of the annual family income. However, in no case shall the hospital charges for a patient whose family income exceeds four times the federal poverty level for a family of four be considered charity.(d)
“Charity care days” means the sum of the deductions from revenues for charity care minus 50 percent of restricted and unrestricted revenues provided to a hospital by local governments or tax districts, divided by gross revenues per adjusted patient day.(e)
“Hospital” means a health care institution licensed as a hospital pursuant to chapter 395, but does not include ambulatory surgical centers.(f)
“Medicaid days” means the number of actual days attributable to Medicaid patients as determined by the Agency for Health Care Administration.(2)
The Agency for Health Care Administration shall use the following actual audited data to determine the Medicaid days and charity care to be used in calculating the disproportionate share payment:The average of the 3 most recent years of audited disproportionate share data available for a hospital to determine each hospital’s Medicaid days and charity care for each state fiscal year.In accordance with s. 1923(b) of the Social Security Act, a hospital with a Medicaid inpatient utilization rate greater than one standard deviation above the statewide mean or a hospital with a low-income utilization rate of 25 percent or greater shall qualify for reimbursement.(a)
The average of the 3 most recent years of audited disproportionate share data available for a hospital to determine each hospital’s Medicaid days and charity care for each state fiscal year.(b)
In accordance with s. 1923(b) of the Social Security Act, a hospital with a Medicaid inpatient utilization rate greater than one standard deviation above the statewide mean or a hospital with a low-income utilization rate of 25 percent or greater shall qualify for reimbursement.(3)
Hospitals that qualify for a disproportionate share payment solely under paragraph (2)(b) shall have their payment calculated in accordance with the following formulas:DSHP = (HMD/TMSD) x $1 million
Where:
DSHP = disproportionate share hospital payment.
HMD = hospital Medicaid days.
TSD = total state Medicaid days.
Any funds not allocated to hospitals qualifying under this section shall be redistributed to the non-state government owned or operated hospitals with greater than 3,100 Medicaid days.
(4)
The following formulas shall be used to pay disproportionate share dollars to public hospitals:For state mental health hospitals:DSHP = (HMD/TMDMH) x TAAMH
shall be the difference between the federal cap for Institutions for Mental Diseases and the amounts paid under the mental health disproportionate share program.
Where:
DSHP = disproportionate share hospital payment.
HMD = hospital Medicaid days.
TMDHH = total Medicaid days for state mental health hospitals.
TAAMH = total amount available for mental health hospitals.
For non-state government owned or operated hospitals with 3,100 or more Medicaid days:DSHP = [(.82 x HCCD/TCCD) + (.18 x HMD/TMD)]
x TAAPH
TAAPH = TAA - TAAMH
Where:
TAA = total available appropriation.
TAAPH = total amount available for public hospitals.
DSHP = disproportionate share hospital payments.
HMD = hospital Medicaid days.
TMD = total state Medicaid days for public hospitals.
HCCD = hospital charity care dollars.
TCCD = total state charity care dollars for public non-state hospitals.
The TAAPH shall be reduced by $6,365,257 before computing the DSHP for each public hospital. The $6,365,257 shall be distributed equally between the public hospitals that are also designated statutory teaching hospitals.
For non-state government owned or operated hospitals with less than 3,100 Medicaid days, a total of $750,000 shall be distributed equally among these hospitals.Any nonstate government owned or operated hospital eligible for payments under this section on July 1, 2011, remains eligible for payments during the 2015-2016 state fiscal year.(a)
For state mental health hospitals:DSHP = (HMD/TMDMH) x TAAMH
shall be the difference between the federal cap for Institutions for Mental Diseases and the amounts paid under the mental health disproportionate share program.
Where:
DSHP = disproportionate share hospital payment.
HMD = hospital Medicaid days.
TMDHH = total Medicaid days for state mental health hospitals.
TAAMH = total amount available for mental health hospitals.
(b)
For non-state government owned or operated hospitals with 3,100 or more Medicaid days:DSHP = [(.82 x HCCD/TCCD) + (.18 x HMD/TMD)]x TAAPH
TAAPH = TAA - TAAMH
Where:
TAA = total available appropriation.
TAAPH = total amount available for public hospitals.
DSHP = disproportionate share hospital payments.
HMD = hospital Medicaid days.
TMD = total state Medicaid days for public hospitals.
HCCD = hospital charity care dollars.
TCCD = total state charity care dollars for public non-state hospitals.
The TAAPH shall be reduced by $6,365,257 before computing the DSHP for each public hospital. The $6,365,257 shall be distributed equally between the public hospitals that are also designated statutory teaching hospitals.
(c)
For non-state government owned or operated hospitals with less than 3,100 Medicaid days, a total of $750,000 shall be distributed equally among these hospitals.(d)
Any nonstate government owned or operated hospital eligible for payments under this section on July 1, 2011, remains eligible for payments during the 2015-2016 state fiscal year.(5)
The following formula shall be used to pay disproportionate share dollars to provider service network (PSN) hospitals:DSHP = TAAPSNH x (IHPSND/THPSND)
Where:
DSHP = Disproportionate share hospital payments.
TAAPSNH = Total amount available for PSN hospitals.
IHPSND = Individual hospital PSN days.
THPSND = Total of all hospital PSN days.
For purposes of this subsection, the PSN inpatient days shall be provided in the General Appropriations Act.
(6)
In no case shall total payments to a hospital under this section, with the exception of public non-state facilities or state facilities, exceed the total amount of uncompensated charity care of the hospital, as determined by the agency according to the most recent calendar year audited data available at the beginning of each state fiscal year.(7)
The agency is authorized to receive funds from local governments and other local political subdivisions for the purpose of making payments, including federal matching funds, through the Medicaid disproportionate share program. Funds received from local governments for this purpose shall be separately accounted for and shall not be commingled with other state or local funds in any manner.(8)
Payments made by the agency to hospitals eligible to participate in this program shall be made in accordance with federal rules and regulations.If the Federal Government prohibits, restricts, or changes in any manner the methods by which funds are distributed for this program, the agency shall not distribute any additional funds and shall return all funds to the local government from which the funds were received, except as provided in paragraph (b).If the Federal Government imposes a restriction that still permits a partial or different distribution, the agency may continue to disburse funds to hospitals participating in the disproportionate share program in a federally approved manner, provided:(a)
If the Federal Government prohibits, restricts, or changes in any manner the methods by which funds are distributed for this program, the agency shall not distribute any additional funds and shall return all funds to the local government from which the funds were received, except as provided in paragraph (b).(b)
If the Federal Government imposes a restriction that still permits a partial or different distribution, the agency may continue to disburse funds to hospitals participating in the disproportionate share program in a federally approved manner, provided:Each local government which contributes to the disproportionate share program agrees to the new manner of distribution as shown by a written document signed by the governing authority of each local government; andThe Executive Office of the Governor, the Office of Planning and Budgeting, the House of Representatives, and the Senate are provided at least 7 days’ prior notice of the proposed change in the distribution, and do not disapprove such change.(c)
No distribution shall be made under the alternative method specified in paragraph (b) unless all parties agree or unless all funds of those parties that disagree which are not yet disbursed have been returned to those parties.(9)
Notwithstanding the provisions of chapter 216, the Executive Office of the Governor is hereby authorized to establish sufficient trust fund authority to implement the disproportionate share program.(10)
Notwithstanding any provision of this section to the contrary, for each state fiscal year, the agency shall distribute moneys to hospitals providing a disproportionate share of Medicaid or charity care services as provided in the General Appropriations Act.
Source:
Section 409.911 — Disproportionate share program, https://www.flsenate.gov/Laws/Statutes/2024/0409.911 (accessed Aug. 7, 2025).