Georgia House Approves 1.45% Tax on Hospitals, Removes Surgery Centers From Provision

The Georgia House of Representatives has approved a bill (H.B. 307) that would levy a 1.45 percent patient revenue tax on most hospitals in the state, but amended a previous version of the bill that would have also levied the tax on ASCs in the state.

The bill was supported by the Georgia Hospital Association and passed the House with a 141-23 vote, according to a report by the Atlanta Journal Constitution.

The hospital fee is intended to minimize state Medicaid funding cuts and help maintain federal matching funds for the program.

A previous version of the bill would have also levied the tax on the revenue of ASCs, but the ASC industry fought its inclusion and an amendment to the bill excluded these providers from the tax. The Georgia Society of ASCs is concerned, however, that the Senate may try to strip the amendment and are encouraging their members to stay vigilant and involved on the issue.

"We appreciate the House of Representatives passing the amendment to exclude physician-owned ASCs from the provider tax," says Victor L. Moldovan, a partner with McGuireWoods who represents the Georgia Society of Ambulatory Surgery Centers.
"The next step is the Senate's consideration of the bill as passed by the House."  

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