The move drew praise from the industry, but the amount was far less than hospitals sought.
Connecticut relied on nearly $2 billion from hospitals to help the state crawl out of the last recession. It won’t have that money when the next recession hits.
One of the more difficult items on Gov. Ned Lamont’s initial to-do list is to craft a new taxing arrangement with Connecticut’s hospitals — and the stakes are huge.
Nine of the 16 health systems in Connecticut ended 2017 in the black, according to a report by the state Office of Health Strategy. Collectively, the systems took in about $14.2 billion in the fiscal year that ended on Sept. 30, 2017. After expenses, this left about $580 million — a 4 percent total margin.
As Connecticut residents continue to die from opioid overdoses at an alarming rate, several doctors agree that being able to share health records electronically across the entire state would help fight the epidemic. But a system to accommodate that sharing remains elusive.
Veyo has made some marked improvements in recent months, but the company hired to oversee the transportation of Medicaid patients continues to be criticized for its performance and has been fined several times by the state for contract violations.
After having experienced some hours-long wait times, Medicaid patients haven’t had to wait longer than 15 minutes for someone to pick up the phone when calling about medical transportation in the last two weeks, according to Josh Komenda, president of Veyo, the state’s new non-emergency medical transportation contractor. But that figure was immediately challenged.
Connecticut hit another snag Wednesday as it tries to develop a new taxing arrangement with its hospitals that would leverage millions of dollars in new federal funding to help both the state and the industry.
The Senate voted unanimously Tuesday to fix a series of technical issues in the new state budget, including a flaw with the new hospital provider tax increase.
Gov. Dannel P. Malloy’s administration clarified its position Thursday on a new taxing arrangement with Connecticut’s hospital industry — removing a key stumbling block to a new state budget in the process.
The fate of a complex new taxing arrangement that would leverage hundreds of millions of federal dollars for the state and Connecticut hospitals to share hung in legal limbo Thursday.
Gov. Dannel P. Malloy’s bid to end the state’s budget impasse hinges on convincing legislators to raise taxes on hospitals one more time — and trust supplemental payments to the industry won’t be cut afterward. Hospitals don’t like the gamble.
Connecticut’s hospital industry launched a new television ad Thursday to protest Gov. Dannel P. Malloy’s proposal to end nonprofit hospitals’ exemption from local property taxation.
Responding to shrinking tax revenues, Gov. Dannel P. Malloy’s administration suspended about $140 million in payments to Connecticut’s acute-care hospitals this week. The decision drew angry responses from the Connecticut Hospital Association and the legislature’s Republican minority.
After watching a harmless fee turn into a hefty, increasing tax in just three years, Connecticut’s hospitals say a phase-out of the state provider tax is essential to preserve health care services and jobs.