The Okaloosa County Board of Commissioners approved an ordinance Tuesday to create a Local Provider Participation Fund (LPPF) that will impose special assessments on private hospitals to help fund health care for low-income and uninsured residents.

• The approved ordinance allows the county to levy non-ad valorem special assessments on three private hospitals: North Okaloosa Medical Center, HCA Florida Twin Cities Hospital, and HCA Florida Fort Walton-Destin Hospital.

The assessments will be used to draw down additional federal Medicaid funding. County Administrator John Hofstad explained that the hospitals approached the county about implementing this assessment, which has been authorized by Governor DeSantis. The program allows access to federal Medicaid dollars that would otherwise be unavailable.

Colleen Ernst from Adelanto Healthcare Ventures, a company working with hospitals across Florida, provided context about Medicaid coverage and the purpose of the program. She explained that Medicaid historically covers only 60% of the costs of health care services and that roughly 45% of all births in Florida are covered by Medicaid.

• She added, “Everyone in this room is paying federal taxes to the federal government. Some of that money has been approved and earmarked specifically to help Florida’s hospitals care for these populations, but the state has been leaving those federal dollars on the table.”

Zach McCluskey, CEO of HCA Florida Fort Walton-Destin Hospital, stated, “We are willing to step up, step forward and be a part of a special assessment that’s borne exclusively by the hospitals. Not any risks for the citizens or the businesses of Okaloosa County.”

• Matt King, CFO of HCA Florida Fort Walton-Destin Hospital, emphasized, “We’re not asking for a single penny from local funding or state funding. This is simply for matching federal dollars.”

Mike Nordness, CEO of North Okaloosa Medical Center, spoke in support of the ordinance. He emphasized the importance of these funds for the hospital’s growth and ability to provide care, stating, “In order for us to continue to evolve and grow with this county, these funds are a huge part of that. This tax funding helps to support us so that we can reinvest, bring great quality healthcare to this entire county.”

Commissioners raised concerns about potential liability for the county. County Attorney Lynn Hoshihara said the hospitals have expressed willingness to sign releases protecting the county from future liability. The ordinance stipulates that any imposition of assessments would be subject to the hospitals executing releases in a form approved by the county attorney.

The approved ordinance is the first step in a two-part process. A second public hearing will be held on September 17 to consider a resolution imposing the actual special assessment on the hospitals.

Okaloosa County will join 26 other jurisdictions in Florida, including neighboring Escambia, Bay, and Leon counties, in implementing this program.