The Connecticut Hospital Association claims hospitals in the state will pay $156 million more in states taxes over the next two years under Gov. Dannel P. Malloy's new budget, which aims to close a nearly $1.7 billion deficit in the upcoming fiscal year, according to the Connecticut Mirror.
The governor didn't disclose the tax hike when presenting his biennial budget to state legislators. However, Chris McClure, a spokesman for Gov. Malloy's budget office, told the Connecticut Mirror the administration's projections show no state tax increase for Connecticut hospitals over the next two fiscal years. He said hospital taxes would only go up if they are making more money.
"Under the old hospital user fee, hospitals were subject to a fee based on prior year filings regardless of their profit for the current year," Mr. McClure told the Connecticut Mirror. "The new Health Care Provider Tax Act is designed to ensure and promote increased uniformity, equity and clarity in taxing healthcare providers. It is a curious business when an industry complains about making more money and being taxed more equitably."
Connecticut hospitals have taken issue with several provisions of the governor's budget, including a plan to allow municipalities to levy a property tax on nonprofit hospitals. To offset the new tax, Gov. Malloy's budget calls for $250 million in supplemental Medicaid funds for hospitals.
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