Connecticut hospitals lose patient revenue tax challenge

The Connecticut departments of Social Services and Revenue Services  rejected the Connecticut Hospital Association's claim that a state tax on hospitals' net patient revenue is unconstitutional, CT Mirror reports.

The Connecticut Hospital Association requested the departments issue an official ruling on the tax's legality Nov. 30, 2015. Social Services Commissioner Roderick Bremby and Revenue Services Commission Kevin Sullivan rejected the association's challenge in a 179-page ruling issued Sept. 22.

Connecticut legislators imposed the tax in 2011 to generate increased federal funding. States earn matching federal dollars by taxing hospitals and redistributing the money throughout the industry. Since 2011, the state has reduced the amount of money it redistributes after collecting the tax, however.

A spokesperson for Gov. Dannel Malloy (D) said his administration is satisfied with the ruling.

Hospital association officials called the decision "unfortunate but not unexpected." The association intends to challenge the ruling in court, according to the article.

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