A tax on Tennessee hospitals has been extended and increased from 3.52 percent of hospital net income to 4.52 percent of hospital net income, according to a Commercial Appeal report.
The hospital fee — which has been approved by the legislature and Gov. Bill Haslam — will help generate federal matching funds for the TennCare, the state's Medicaid program. The new tax rate will go into effect on July 1 and extend for one year.
The fee is expected to generate $449 million from hospitals, resulting in $870 million in additional federal matching funds, according to the report.
Government-owned hospitals, critical access hospitals, free-standing rehabilitation hospitals and pediatric research hospitals will be exempt.
Read the Commercial Appeal report on the Tennessee hospital tax.
Read related articles on the Tennessee hospital tax:
Tennessee Hospital Assessment Holds Up State Budget Approval
The hospital fee — which has been approved by the legislature and Gov. Bill Haslam — will help generate federal matching funds for the TennCare, the state's Medicaid program. The new tax rate will go into effect on July 1 and extend for one year.
The fee is expected to generate $449 million from hospitals, resulting in $870 million in additional federal matching funds, according to the report.
Government-owned hospitals, critical access hospitals, free-standing rehabilitation hospitals and pediatric research hospitals will be exempt.
Read the Commercial Appeal report on the Tennessee hospital tax.
Read related articles on the Tennessee hospital tax:
Tennessee Hospital Assessment Holds Up State Budget Approval