Connecticut tentatively resolves spat with hospitals over fees
Connecticut’s top government officials and hospitals are cheering a tentative deal they say resolves a long-standing legal feud over hospital fees.
Gov. Ned Lamont and the Connecticut Hospital Association say the proposed seven-year agreement will lower a so-called “provider tax” on hospitals while allowing the state to dodge what could have been a potential $4 billion liability from the hospitals’ legal claims.
State lawmakers are expected to hold a vote on the proposed settlement this week. The pact covers fiscal 2020 through 2026. Besides addressing the hospital fee issue, it would increase Medicaid payments and supplemental payments to hospitals and trigger $70 million in one-time refunds. All told, hospitals would go from losing $231.6 million in fiscal 2019 to gaining $123.7 million in fiscal 2026, thanks to a mix of lower fees and higher supplemental and Medicaid payments.
The annual user fee that hospitals currently pay stands at $900 million, and would gradually decrease nearly 9% to $820 million by fiscal 2026. Supplemental payments to hospitals would increase 15%, from $493.3 million in fiscal 2019 to $568.3 million in fiscal 2026.