Florida’s Hospitals Contribute $198 Billion to the State’s Economy

Investments in the Healthcare Workforce, Rural and Maternal Health and Support Services for Vulnerable Florida Families Will Improve the Delivery of Care  

Tallahassee, Fla. — The Florida Legislature approved today $49 billion in healthcare investments for the 2026-2027 state fiscal year budget to strengthen access to care for Floridians and bolster the state’s healthcare workforce. The Florida Hospital Association (FHA) advocated for these investments and commends state leaders for prioritizing investments that will strengthen the healthcare workforce, support rural and maternal health, and maintain care delivery for the most vulnerable families across Florida.   

“Florida’s healthcare system is evolving. To continue providing outstanding care as the demand for services grows, it’s vital that we invest in our state’s healthcare workforce, rural and maternal health initiatives and safety-net services,” said Mary C. Mayhew, president and CEO of FHA. “We are grateful to Senate President Ben Albritton, Speaker Daniel Perez and the many senators and representatives who have championed these critical resources for the benefit of Floridians.” 
Investments in the 2026-2027 state fiscal year budget to support healthcare include: 

Continues budget authority for the Rural Health Transformation Program, a federally funded program signed into law in HR 1, designed to bolster the healthcare workforce, implement modern technologies and establish rural care partnerships. 

• $1.7 billion in additional funds to support projections for Florida’s Medicaid and KidCare programs.  
• $38.4 million for the expansion of the Program of All-Inclusive Care for the Elderly (PACE) to support healthier aging.  
• $15 million in additional funding to implement a tiered reimbursement model for Statewide Inpatient Psychiatric Program services. 
• $12 million in additional funding for Graduate Medical Education to support the state’s physician and healthcare provider pipeline.  
• $10 million in additional funding for the Cancer Innovation Program to research life-saving innovations.  
• $5 million in additional funding to support research on Neurofibromatosis Disease. 
• $700,000 in additional funding to establish a Doula Support for Healthy Births Pilot Program, targeting pregnant and postpartum women who have overcome or are overcoming substance use disorders. 
• Inclusion of proviso language to direct the Florida Agency for Health Care Administration to seek federal approval from the Centers for Medicare and Medicaid Services to establish coverage for Institution for Mental Diseases (IMD) services through a federal IMD Medical waiver. 
• Continued investment for the LINE and PIPELINE nursing education programs. 
• Continued investment in the Rural Hospital Capital Improvement Grant Program.  

“Floridians should have access to timely, high-quality care regardless of where they live or the barriers they may face,” said Mayhew. “These investments strengthen the foundation of Florida’s healthcare system to serve patients and improve health outcomes across Florida communities.”

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ABOUT FHA

Founded in 1927, the Florida Hospital Association (FHA) is the leading voice for health care in the State of Florida. Through representation and advocacy, education and informational services, the Florida Hospital Association supports the mission of over 260 hospitals and health care systems to provide the highest quality of care to the patients we serve. Led by President and CEO Mary Mayhew, the Florida Hospital Association is located in Tallahassee and is governed by a Board of Trustees and officers elected by the member institutions. To learn more, visit www.fha.org.