Modern Healthcare

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.

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