Connecticut hospitals are reversing course on Democratic Connecticut Gov. Dannel Malloy's proposed hospital provider tax increase, according to a Record-Journal report.
The governor recently proposed increasing the state's hospital provider tax to help address the state's budget impasse. Under Mr. Malloy's proposed budget, the hospital tax would increase from 6 to 8 percent, according to the report. His office has said updating provider tax provisions and increasing the tax rate are efforts designed to bring in more general fund revenue "that will support healthcare investments" and bring in hundreds of millions in federal grant revenue over two fiscal years.
The Connecticut Hospital Association previously came out against the proposal. However, the CHA is reversing its course amid an agreement with the governor, which includes "assurances that the hospitals would receive a full reimbursement for their tax payment," the report states.
"We reached an agreement that will provide much-needed funding to care for Connecticut Medicaid patients," CHA CEO Jennifer Jackson said in the report. "It will help preserve critical healthcare jobs, and it recognizes that hospitals are foundational to our state's economic health."
Read the full report here.
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