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Hospitals urge overhaul of governor's hospital-tax plan, warn of Medicaid shortfalls
Summary
Hospital leaders and the Connecticut Hospital Association urged the Finance, Revenue and Bonding Committee to reject the governor's proposed changes to the hospital-provider tax in SB84 and instead adopt a multi-year plan aimed at maximizing federal matching funds and protecting safety-net hospitals. They warned the current proposal would shift costs and leave hospitals more financially vulnerable.
Hospital executives urged Connecticut lawmakers on Tuesday to rethink the governor's proposed restructuring of the hospital-provider tax, saying the draft would make hospitals'already precarious finances worse and do little to secure the federal approvals needed to preserve access to care.
The Connecticut Hospital Association recommended a different approach to the tax in SB84: work with the state to craft a multi-year plan that maximizes federal matching dollars, uses increased tax proceeds to support patient care, and ensures participating hospitals receive proportional supplemental payments.
"This fiscal year, hospitals will pay $820 million in taxes," Paul Kidwell, CHA's senior official on the issue, told lawmakers. "Under the governor's proposal, the tax will increase by $100…
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