Hospital officials hoped for a 3.8 percent increase that would have generated about $500 million in funds, according to the report.
In contrast, insurance providers wanted a 0.8 percent increase.
Executives from the Cost Review Commission said that 60 percent of hospital costs are due to employee wages, but with the struggling economy, salaries won’t be as high next year, according to the report. In addition, hospital costs increased 1.5 percent this year, as compared to 3-4 percent in 2008, which also factored into the 1.2 percent recommendation.
A final recommendation could be made as early as May 13, according to the report.
Read the Business Journal’s report on the recommended Maryland hospital rate hike.
