February 22, 2011 | last updated May 31, 2012 3:55 pm

Hospitals, Malloy set to clash over budget proposal

The Connecticut Hospital Association, which represents the state's 29 acute care hospitals, is raising concerns over Gov. Dannel P. Malloy's budget, saying a proposed tax increase on on the industry will severely weaken Connecticut's healthcare safety net.

Of most concern to hospitals, according to the CHA, are two budget provisions that:

  • Impose a hospital provider tax at a rate of 5.5 percent from July 1, 2011 until September 30, 2011, and 5.71 percent thereafter.
  • Eliminate the Uncompensated Care and Urban DSH Pools, for a savings of $83 million in both FY 12 and FY 13.

"We fully appreciate the difficult job facing Governor Dannel Malloy as he attempts to balance needs and resources," said Jennifer Jackson, CHA President and CEO, in response to the release of the 2012-13 state budget proposal. "Hospitals in Connecticut are all too familiar with making tough choices while sustaining access to high quality healthcare services for our communities. While we recognize that the state is facing an unprecedented budget deficit, reducing funding and imposing taxes on hospitals will severely weaken Connecticut's healthcare safety net-and will have a lasting detrimental impact on the quality of life and health of all Connecticut citizens."

CHA officials say the proposed changes couldn't come at a worse time for Connecticut hospitals as the number of patients without insurance and those dependent on government programs has been rising at the same time that payments from all sources have been dwindling.

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