The tax, which would increase to 5.71 percent after Sept. 30, 2011, is being contested by a number of hospitals in the state that say the tax would hurt the hospitals, which already face reimbursement declines.
Lawrence and Memorial Hospital in New London, Conn., has said the tax, coupled with the elimination of reimbursements, would create a $2.8 million loss of the hospital. William W. Backus Hospital in Norwich, Conn., could lose $1.5 million, according to the report. Hospitals also argue the cuts could force them to reduce staffing or services.
Gov. Malloy introduced the measure as part of his budget, which is currently undergoing hearings.
Read the Groton Patch report on the Connecticut hospital tax.
Read more coverage on hospital provider fees:
– North Carolina Legislature Approves Hospital Provider Fee
– Arizona Hospitals Ask Governor to Implement Provider Tax
– Oklahoma House Approves Hospital Provider Fee
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