The Connecticut Hospital Association experienced an allergic reaction to Gov. Dannel Malloy’s budget proposal to enable municipalities to levy property taxes on real estate owned by nonprofit hospitals.
The governor’s office estimated that this new tax will result in approximately $212.2 million per year in revenue. The state would offset these new costs to hospitals via $250 million in supplemental Medicaid payments – but that could be subject to change if the status of the Affordable Care Act is significantly altered.
Jennifer Jackson, CEO of the Wallingford-based trade group, issued a statement condemning the governor’s proposal. “We strongly oppose this new tax on hospitals,” Jackson said. “Taxing local hospitals is a direct attack on the fabric of our communities. We’ve been down this road before with a budget gimmick that already resulted in more than $2 billion taxed and cut from hospitals. The hospital tax has increased costs for patients, caused the loss of thousands of healthcare jobs, extended wait times and reduced access to care for those who need it most.”
Jackson added that the hospital association “will vigorously fight any new attempt to tax hospitals.”