May 8, 2015 Mr. Russell Armistead Chief Executive Officer UF Health Jacksonville 655 West 8th Street Jacksonville, Florida 32209 RE: How Hospitals Can Fairly Share Record Profits Dear Mr. Armistead:

On May 5, 2015, I issued an executive order creating a Commission on

Healthcare and Hospital Funding to gather information on taxpayer funded healthcare entities in Florida and their return on investment. As you know, this information is even more important to have now that we are preparing for a special session to pass a budget funding only critical services to keep government operating past June 30th.

Earlier this week, I met with U.S. Health and Human Services Secretary Sylvia

Burwell to discuss the future of Low Income Pool funding in Florida, which the Obama Administration abruptly stopped funding. I asked the Secretary to reconsider funding the Low Income Pool program in Florida and stressed that our state needed an immediate answer from the Obama Administration if they would reconsider funding LIP for low income Floridians. A non-answer from the Obama Administration, I said, would effectively be a no, leaving us without federal funds to include in a state

budget. After my meeting with HHS, and their subsequent press release criticizing our

pending LIP application, I now believe it is more important than ever for us to begin preparing a state budget without any LIP funds from the federal government. Additionally, it is important to note HHS has made clear they will not approve any work requirements for Medicaid as included in the bill sponsored by Senator Bean.

Therefore, I am asking that you begin working immediately to prepare

information that will assist the Commission on Healthcare and Hospital Funding. This information should include scenarios on how your organization suggests hospitals can fairly share the more than $3.7 billion in recent record profits to transition from being dependent on federal LIP funding.

Mr. Russell Armistead May 8, 2015

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Your assistance in suggesting fair profit sharing to replace federal LIP funds at those institutions that rely on them most, like Shands Jacksonville, will be critical to keeping them up and running. This would be similar to how large market baseball teams share revenues with small market baseball teams. With the hospital industrys record-high profits, it does not make sense for the hospital industry to ask state taxpayers to backfill funding the Obama Administration has elected to terminate.

Please compile information and design a minimum of three profit sharing

scenarios where the hospital industry shares the $3.7 billion in record profits to assist the institutions who most need funding assistance no later than May 22nd. The Commission on Healthcare and Hospital Funding will meet on May 26th to review these profit sharing scenarios and ask questions seeking additional data, as needed.

Florida families deserve access to the healthcare services they need at a price they

can afford. Thank you again for your assistance in this important matter.

Sincerely,

Rick Scott Governor

cc: The Florida Safety Net Hospital Alliance of Florida Florida Hospital Association