Boo-hoo! The CT State Legislature's Finance Committee is proposing a hospital gross receipts tax. Yes, a worst nightmare for hospitals, so they say.
But is it really a hospital's worst nightmare for the State of CT to levy a 5.5% gross revenue tax?
According to Capitol Watch, Under the complicated tax, all hospitals would be charged the tax, but they would receive money back for "uncompensated care.'' As such, hospitals in the cities with high amounts of non-paying customers would receive more money back than suburban hospitals that have larger amounts of patients who are covered by insurance. In turn, places like Greenwich Hospital would be net losers under the scenario.
So really the bottom line is this: Hospitals, if you treat those in need, we, the citizens will thank you and not try to take so many of your profits. Yes, I do mean profits. While there still remain a few nonprofit, mission-focused nonprofit hospitals, there are also the for-profits -- the folks that bought out nonprofits and thankfully left citizens with conversion funds. But, like the name suggests, they do make profits and while we work toward getting a health care system that ensures all can be treated, I'm thinking a tax with a financial incentive to serve those without means is a good place to start.