The fee, which will raise $709 million from hospitals for the state’s Medicaid program, is intended to bring $1.8 billion in federal matching funds to the state. The matching funds will be used to increase reimbursements for Medicaid care, but the Ohio Hospital Association estimates that $145 million of the money paid by the hospitals will not be recouped by these reimbursement increases.
The fee, which is included in the state budget, will require hospitals to pay a fee of 1.52 percent of their 2007 operating expenses. In 2011, this fee will increase to 1.61 percent. If the budget is approved by the Governor, hospitals would be required to begin paying the fee in October.
Hospitals warn that services and jobs may be cut in order for hospital’s to pay the fee.
Read the Journal News’ report on the Ohio hospital fee.
