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Florida Healthcare: $198B Economic Impact, Newborn Screening & Medicaid Changes

by Dr. Jennifer Chen

Florida’s hospitals continue to be a significant economic engine for the state, contributing over $198 billion to the economy in 2023 and employing more than 343,000 full-time workers, according to a new report from the Florida Hospital Association. This economic impact underscores the vital role hospitals play, not only in providing healthcare but also in supporting communities and driving economic growth.

The report, titled “Economic Contributions of Florida Hospitals and Affiliated Healthcare Businesses in 2023,” highlights a continued upward trend. From 2021 to 2023, Florida hospitals increased employment by 11% and expanded their overall economic impact by 6.8%. This growth mirrors a national trend, with employment in healthcare and social assistance outpacing other industries, increasing by 12.5% over the past three years.

“Hospitals are the heart of medical care in our communities and are supporting health care systems to effectively meet growing demand and deliver innovative, world-class care,” said Mary Mayhew, President and CEO of the Florida Hospital Association. “The latest economic impact data underscores their contributions – not only of the lifesaving care they provide, but also as powerful economic engines driving Florida’s future.”

Expanding Newborn Screening in Florida

Florida lawmakers are considering legislation to expand the state’s newborn screening program. Senate Bill 1574, known as “Mattie’s Law,” aims to require screening for biliary atresia, a rare liver disease, for all newborns. Currently, Florida already screens newborns for a number of genetic and metabolic disorders, but this bill would add another potentially life-altering condition to the panel.

The bill mandates that all newborns be screened for biliary atresia by testing direct bilirubin levels using the blood sample already collected for standard newborn screenings. It also requires hospitals providing birthing services to conduct this screening as part of their routine newborn care, effective January 1, 2027. The Department of Health would consult with the Genetics and Newborn Screening Advisory Council regarding screening methods and the addition of new conditions.

In addition to the screening requirement, SB 1574 directs the Department of Health to launch a public health education campaign by October 1, 2026, to raise awareness of biliary atresia. This campaign will focus on educating parents about the symptoms of the disease and the importance of early diagnosis, as well as providing guidance to physicians and nurses on identifying the condition and understanding the risks associated with delayed treatment.

Focus on Infant Mortality and Medicaid

The Florida House of Representatives is taking steps to address infant mortality rates through changes to Medicaid managed care plans. A provision within the House’s health care spending plan proposes withholding 2% of capitation payments from these plans, with the potential for recoupment based on performance in reducing infant mortality.

Under the proposed system, the plan demonstrating the largest year-over-year reduction in the infant mortality rate, and the plan with the greatest raw reduction in infant deaths, could recover the full 2%. Other plans could recoup 1% if they show improvement. Plans that experience an increase in infant mortality would forfeit the entire 2% and face a four-month suspension from Medicaid auto-assignment, potentially impacting their enrollment numbers.

Representative Alex Andrade, chair of the House health care budget panel, explained that the goal is to incentivize competition and focus efforts on improving infant health outcomes. “The idea is, so long as you show improvement, you’ll get at least 1% of your revenue back,” Andrade said. “If you show the most improvement, you’ll get the full 2%.”

Recent Appointments and Upcoming Events

Governor Ron DeSantis has recently reappointed Audrey Butler, Harold Goodemote, Andrew Lupoli, and Thomas McCall to the Halifax Health Board of Commissioners. These appointments reflect the ongoing commitment to strong leadership within Florida’s healthcare system.

Looking ahead, several meetings are scheduled for the coming weeks. The House Health & Human Services Committee will meet on , as will the Senate Appropriations Committee on Health and Human Services. Additional subcommittee meetings are planned throughout the week. The Safety Net Hospital Alliance of Florida will also host Hospital Days at the Capitol on and .

several legislative updates are worth noting. The House is advancing a bill that would restrict local net-zero policies, and the DeSantis administration has published proposed rules regarding the AIDS Drug Assistance Program (ADAP), potentially limiting eligibility and benefits. Cannabis firms are also challenging new marketing regulations, and a bill requiring parental permission for teen STD treatment is moving forward in the House.

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