Phoenix health care ordinance approved

PHOENIX, AZ - The Phoenix City Council passed an ordinance Tuesday supporters say will dramatically improve health care.

The ordinance places a six-percent tax on hospitals in Phoenix, yet doctors, nurses and administrators are overwhelmingly in favor of it.

The money raised by the tax will be transferred to AHCCCS , the state's Medicaid program.

The federal government will match every dollar that's transferred to AHCCCS, two to one.

The ordinance is expected to generate $200 million over the next year.

Hospital administrators tell ABC15 they could really use the money as they've seen their payments from AHCCCS cut dramatically in recent years despite the increasing number of indigent patients they're seeing.

The ordinance is contingent on AHCCCS and the federal government, among other agencies, signing off on it.

If that agreement happens, however, the ordinance could take effect in as little as 30 days.