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December 1996 (Volume 74)
Quarterly Article
Jean M. Mitchell
Stephen A. Norton
Sep 17, 2026
Sep 14, 2026
Sep 9, 2026
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Several states have imposed a provider tax to create a revenue pool for compensating hospitals that provide services to the uninsured. In Florida, this fund, called the Public Medical Assistance Trust Fund, has been at least partially successful: First, fund dollars have helped provide coverage to many previously uninsured persons. Second, although direct subsidy payments cover only a small share of prior year uncompensated care dollars, public hospitals appear to be the primary beneficiaries of the subsidy payments. Third, the provider tax yields a stable, albeit inadequate, source of revenue. It appears to be a useful tool for generating the initial funding to expand health insurance coverage, but in order to raise enough money to finance substantial change, provider assessments will have to be imposed on a wider range of health care facilities and even on certain types of health care professionals.
Author(s): Jean M. Mitchell; Stephen A. Norton
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Volume 74, Issue 4 (pages 545–569) Published in 1996