Franchise Fee

The franchise fee is a provider tax program created in 2009 to balance the state budget. Proceeds support state general revenue fund, hospital-financed supplemental payments for fee-for-service Medicaid, managed care incentives and inpatient/outpatient rates.

Hospital Payment Schedule

Assessment Due Oct. 29
Assessment Due Jan. 14, 2019
Assessment Due Feb. 25, 2019
Assessment Due April 22, 2019

These dates are preliminary and subject to change.

New Update - Oct. 26, 2017

A franchise fee spreadsheet for the 2018 program can be seen here.

New Update - Oct. 14, 2016


OHA Releases Preliminary 2017 Hospital Franchise Fees

In late September, ODM provided OHA with a schedule of franchise fee due dates and payment dates for UPL. A sample letter can be found online. The letter outlines the following schedule for dates beginning in three weeks:

Franchise Fee Due
Oct. 21
Dec. 9
March 17
May 19

ODM will not provide further notice of franchise fee due dates as the year progresses, so please keep this assessment notice for your records. Further background information on the development of the franchise fee program for 2017 is available in a presentation given to the OHA Annual Medicare & Medicaid Update Conference held earlier this week.

OHA anticipates ODM will finalize franchise fees soon, so stay tuned for updates.

New Update - May 12, 2016

2016 Hospital Franchise Fee Update

ODM has released the amounts due from each hospital for the 2016 Hospital Franchise Fee. The Franchise Fee spreadsheet can be seen here.

If you have any questions or concerns, please contact Daniel Vielhaber or Ryan Biles.

New Update - Jan. 28, 2016

Hospital Franchise Fee 

ODM will hold a public hearing on the newly updated and proposed hospital franchise fee rule (OAC 5160-2-30 ) Feb. 12, in Columbus. The proposed rule sets the assessment rate for the 2016 HFF program, and for each year thereafter, at 2.66% of modified, adjusted total hospital facility costs, in line with the SFY 2016-17 state budget. After a public hearing the rule will require approval from JCARR before ODM can finalize its calculations and release assessment notices to hospitals. 
CMS has until early May to review and approve the SPAs. This follows the state’s receipt of two formal requests for additional information during CMS’ initial 90-day review period. OHA will attempt to expedite the final CMS 90-day review as much as possible. As of now, OHA anticipates a May/June time frame for franchise fee collections. OHA will provide members with updated franchise fee estimates as soon as CMS approval becomes imminent. OHA shared preliminary estimates with members last October, but feel free to request them if you did not receive them earlier by contacting
In the meantime, OHA will continue to process inpatient MCP Incentive payments in partnership with Ohio’s five Medicaid managed care plans (MCPs). Payments were processed in December for the first five months of SFY 2016, and we anticipate making additional two-month payments in early February, early April and early June. The final month of SFY 2016 MCP Incentive payments will be processed in December, along with the first five months of SFY 2017 incentive payments. 

April 13, 2015

ODM Sends 2015 Franchise Fee Notices to Hospitals

On April 13, 2015, the Ohio Department of Medicaid (ODM) sent final assessment notices to hospitals for the 2015 hospital franchise fee program. A sample is available by clicking here. Each notice details a hospital’s 2015 franchise fee assessment, instructions on how to wire the funds to the state, and the due dates for each fee payment, April 30 and May 18. Please check to ensure the franchise fee in the notice matches the franchise fee listed online.

Other News

ODM Releases Revised Collection & Payment Schedule for 2015 Hospital Franchise Fee and Upper Payment Limit (UPL) Payments
Earlier today (March 2, 2015), the Ohio Department of Medicaid issued an updated regulation governing the 2015 hospital franchise fee program that contained a revised collection schedule. Hospitals now must pay fifty percent of their 2015 franchise fees to ODM on or before April 30 and the remaining fifty percent on or before May 18. 

OHA previously released preliminary hospital-specific franchise fee (click here) schedules for the 2015 program year. These figures have not yet been finalized by ODM, but represent OHA’s most recent estimates of the likely fees by hospital.
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