Local hospitals could take a big hit if the General Assembly doesn’t extend a tax on hospital revenues or find some other source of funding, say executives.
For the past two years, the state has charged most hospitals a 1.45 percent tax on revenue. The state uses that money to qualify for additional federal Medicaid funds that it uses to reimburse hospitals for caring for Medicaid patients. Medicaid is a federal-state program that provides health coverage for low-income people.
The tax is set to expire at the end of June. But the Senate could vote today on a bill that would allow the Department of Community Health to extend that tax for up to five years.
“My understanding is if they don’t get that (federal) matching money, the Medicaid reimbursements to all hospitals would be significantly less, 30 percent less, I think,” said Murray Medical Center Chief Executive Officer Roy Orr. “It would definitely hurt us.”
Some conservative groups oppose the tax, but the Georgia Hospital Association supports renewal of the tax. Supporters say 15 or more community hospitals could close if it isn’t renewed.
“Under the current plan, it’s basically a wash for Hamilton Medical Center. It has been very neutral,” said Jeff Myers, president and CEO of Hamilton Health Care System. “We’re supporting the Georgia Hospital Association’s proposal that is similar to what’s in place now. The alternative to passing this legislation would be significant cuts to Medicaid rates — as much as 34 percent, which would impact our ability to provide health care to our patients.”
Local News
January 17, 2013
Local hospitals say ‘bed tax” is vital
- Local News
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Still missing: Riders detour to visit with mother of MIA Vietnam vet
Karoni Forrester, of Texas, with the National League of POW/MIA Families, left, speaks with Christine Jones, whose son Bobby, a soldier in the Vietnam War, is still classified as MIA, on Tuesday. (Misty Watson/The Daily Citizen)
At 96-and-a-half years old, Christine Jones still remembers well that day in 1972 when she learned her son was missing in action.
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