The Phoenix City Council adopted the measure, which will impose a short-term, 6 percent tax on net patient revenue for 11 city hospitals.
The money raised from the provider fee will be transferred to the Arizona Health Care Cost Containment System, the state’s Medicaid program. The federal government will match the funds at a two-to-one ratio, generating more than $200 million to be dispersed back to hospitals, according to the report.
Hospital executives, physicians, nurses and other healthcare providers supported the measure in Phoenix, which they said will help systems grapple with rising costs of uncompensated care.
“We have a moral and legal obligation to care for those who might die,” said David Lamparter, CFO of John C. Lincoln Health Network and supporter of the ordinance, in the report. “That comes at a great price.”
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