Connecticut governor suspends $140M in payments to hospitals

Connecticut Gov. Dannel P. Malloy's administration delayed approximately $140 million in payments to the state's acute care hospitals this week, according to the Harford Courant.

The governor's administration suspended the payments in response to recent projections showing declining income tax receipts. Anticipated income tax revenues have been lowered by nearly $200 million for this fiscal year, according to Connecticut's Office of Fiscal Analysis.

"Please be advised that I have asked the Department of Social Services to hold on making any additional supplemental payments … until we have identified the steps needed to address this fiscal year's budget deficit," Connecticut Office of Policy and Management Secretary Benjamin Barnes, wrote Wednesday in a memo to hospitals. "While I hope to have this task completed later this month, due to the significant drop in revenues, I am not optimistic that we will be able to move forward with any further state payments this fiscal year."

The Connecticut Hospital Association is outraged with the governor's decision. "His actions are breaking the healthcare system and increasing costs for patients," said Jennifer Jackson, CEO of the Connecticut Hospital Association.

More articles on healthcare finance:

California hospital to close after restructuring plan fails
South Dakota hospital to lose Medicare funding
Mayo operating income dips 36.9% as expenses rise

Copyright © 2022 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.


Featured Learning Opportunities

Featured Whitepapers

Featured Webinars