Arizona Hospitals Ask Governor to Implement Provider Tax

The Arizona Hospital and Healthcare Association is asking Governor Jan Brewer to consider legislation that would impose a provider tax on hospitals and other healthcare providers to ease cuts to the state’s Medicaid program, according to a Phoenix Business Journal report.

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The AzHHA’s proposal would impose a $360 million tax on hospitals, a $100 million tax on health plans and a $5 million tax on nursing homes and would remain in effect until 2013. The tax would be used to generate revenue to the Arizona Health Care Cost Containment System, which faces $540 million in cuts. Gov. Brewer proposed the cuts, to be achieved by removing 280,000 from the program, as part of efforts to close the state’s budget deficit.

Healthcare providers worry that cutting AHCCCS enrollees will lead to increased uncompensated care, which creates a financial burden for hospitals.

Read the Phoenix Business Journal report on the Arizona hospital tax.

Read more coverage on hospital provider fees:

West Virginia Legislature Passes Hospital Fee

Oklahoma House Approves Hospital Provider Fee

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