Nevada Private Hospital Assessment & Payment Program

Starting January 1, 2024, the Division of Health Care Financing and Policy (Division) will begin operating the Nevada Private Hospital Assessment & Payment Program pursuant to NRS 422.3794. This new program will fund new supplemental Medicaid payments for all private hospitals operating in the state with the goal of improving access to quality care for Medicaid recipients statewide. When matched with federal Medicaid funds for service rendered, the assessment revenue is expected to bring in an estimated $800 million per calendar year in new total Medicaid payments to private hospitals statewide on an annual basis.


State laws allows the Division to impose an assessment on private hospitals if at least 67 percent of all operating hospitals licensed by the State of Nevada vote in favor of the assessment. The Division may use the assessment revenue to finance new Medicaid supplemental payments for private hospitals. Funds can also be used for administrative costs to implement and operate the program. Any additional funds can be used to support improved access to care in the community setting for individuals with serious behavioral health conditions with the goal of avoiding inpatient services and institutional care. See NRS 422.3794 for the statutory authority to implement the new program.

Which hospital types are most impacted by the assessment?

All privately-owned hospitals that are licensed and operating in the State of Nevada are subject to the assessment.

How much is the assessment?

The assessment rates are applied to an individual private hospital’s net patient revenue less Medicare revenue. For more information, see Nevada Hospital Assessment Program Bulletin: 23-001.

The assessment rates for state fiscal year (SFY) 2024 levied on inpatient and outpatient services provided by private hospitals are as follows:

a)      Inpatient Services: 3.176%
Outpatient Services: 3.740%

What will the funds be used for?

As outlined in program guidance issued by the Division in the Private Hospital Tax Bulletin 23-001, the revenue shall be used to finance:

  • New Fee-for-Service Supplemental Payments for Private Hospitals
  • New State-Directed Payments for Private Hospital through the Managed Care Program
  • Potential for New Payments to Public Rural Hospitals (as needed to avoid unintentional financial impacts)
  • New Spending for Administrative Costs, State Premium Tax Fee, and Behavioral Health Care