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Hospital leaders challenge new tax proposal

Hospital leaders are converging on the state capitol this week to ask legislators to reject Gov. Dannel P. Malloy’s proposed tax on hospitals and any other detrimental measures that may come before them.

Representatives from the Connecticut Hospital Association have scheduled a Wednesday morning press conference at the Legislative Office Building in Hartford to oppose Malloy’s proposed fiscal 2018-19 budget that would raise the hospital tax by nearly $160 million over the two-year period, allow municipalities to tax not-for-profit hospitals, and eliminate the small hospital pool.

The Connecticut Hospital Association and individual Connecticut hospital representatives say the state’s hospitals already pay $556 million in taxes a year, nearly 30 times the corporate tax rate.

To date, the negative impacts of the existing hospital tax, industry officials say, include increased costs for patients; the loss of 3,000 healthcare jobs; extended wait times; and reduced access to care for those who need it most.

Hospitals are asking legislators to oppose any measures to increase taxes or institute new taxes on hospitals, and oppose proposals that would add regulatory burdens on hospitals.

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