Republican Governor Rick Scott of Florida has been one of the fiercest critics of President Obama’s Affordable Care Act. But yesterday, Scott reversed course on a big part of the new law, dropping his opposition to expanding health care for the poor in his state. Scott said he’ll expand medicaid for three years — that’s when federal startup funding expires.

While the announcement is sure to make political ripples, it is also a big win for Florida hospitals – who currently absorb most of the costs that uninsured patients incur.

Yesterday, the Department of Health and Human services granted Florida a waiver to allow the state to expand its pilot Medicaid privatization program. Florida will seek a third-party vendor to manage the program. Governor Scott has argued privatization will help control Medicaid costs, which make up about a quarter of the state’s budget.

To hear more about Florida’s new health reforms, click on the audio player above.