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.
Connecticut hospitals will receive $1.8 billion in state and federal funds between now and 2026 to resolve a lawsuit that could have cost the state as much as $4 billion, according to details released Thursday by Gov. Ned Lamont.
Gov. Lamont and the Connecticut Hospital Association announced the settlement of a four-year-old industry lawsuit contesting a provider tax that has extracted billions of dollars since 2011.
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.
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 hospitals would pay $156 million more in state taxes over the next two years under Gov. Dannel P. Malloy’s new budget — an increase Malloy did not report to legislators when presenting his biennial plan on Feb. 8, the Connecticut Hospital Association says.
Gov. Dannel P. Malloy signaled an intention Tuesday to lay off state employees in the current fiscal year, saying the workforce must shrink substantially, and that the process must begin before the fiscal year ends on June 30. Malloy spoke to reporters after a meeting with legislative leaders, where he pressed them to offer their own cost-cutting ideas.
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.