Georgia Hospital Association Drops Opposition to Hospital Tax After Medicaid Cut Proposed Instead

Faced with the prospect of reduced Medicaid reimbursements instead of a proposed state hospital fee, the Georgia Hospital Association ended its opposition to the hospital fee, according to a report by the Chattanooga Times Free Press.

Gov. Sonny Perdue's proposal would have levied a 1.6 percent healthcare facility fee that would realize $345 million in state funds, $247 million from hospitals, to qualify for enhanced federal payments for Medicaid.

But last week Gov. Perdue proposed to drop the hospital fee, reduce Medicaid payment rates to hospitals and doctors by 10.25 percent, and remove the sales tax exemption for some nonprofit hospitals.

Read the Chattanooga Times Free Press' report on Georgia Medicaid payments.

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