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February 12, 2016

Hospitals: Tax burden 30 times that of any other business

In testimony before the Appropriations Committee, a Connecticut Hospital Association executive said the tax burden on member hospitals is 30 times that of any other business. He said as recently as four years ago hospitals provided no tax revenue.

Stephen A. Frayne, senior vice president of health policy for the Connecticut Hospital Association, was speaking in opposition to HB5044, the governor’s proposed amended budget. Frayne said it proposes another $90 million cut to hospitals. With this additional cut, he testified, total hospital cuts related to the provider tax for the biennium will reach $782 million.

Frayne reiterated in his testimony the hospital association’s call for returning to hospitals the taxes they pay to the state. He said this would create 6,600 new jobs and add $35 million to the state’s coffers. Those figures are based on research paid for by the CHA.

A spokesperson for the state Office of Policy and Management, which oversees the budget, wasn’t immediately available for comment.

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