Supplemental Hospital Offset Payment Program (SHOPP)

The Supplemental Hospital Offset Payment Program (SHOPP) fee is a fee paid by certain hospitals in Oklahoma. The funds are then pooled, matched with federal dollars, and redistributed first to critical access hospitals and then to other hospitals in the state to support their operations. 

Some hospitals are exempt from paying the fee, including hospitals operated by state, Tribal, or federal governments, hospitals that mainly provide certain services like obstetric care or cancer treatment, and long term acute care, children’s, and critical access hospitals. For hospitals that are subject to the fee, it is calculated as a percentage of the hospital’s net patient revenue. Notably, hospitals are prohibited from charging patients any part of the fee.  

Oklahoma statute stipulates that the fee cannot be more than four percent of each hospital’s revenue. The fee is currently set at 2.5 percent. During the 2021 Legislative session, lawmakers passed Senate Bill 1045 that mandated a phased increase in the SHOPP fee. The fee will gradually increase to four percent in calendar year 2024, and will remain at that level in subsequent years. Though not expressly outlined in the bill, legislators have stated that the increased funds will be used to fund Medicaid expansion in future years.