Ohio Representatives Terry Boose of Norwalk and Troy Balderson of Zanesville, both Republicans, said Monday they plan to introduce legislation that would provide tax relief to Ohio hospitals.
The proposal is aimed at reducing the hospital franchise fee, which took effect in November. The fee is expected to raise $150 million — net of Medicaid and other reimbursement hikes — in the next two years to help narrow a chasm in the state’s budget.
Many hospital leaders call the fee a “tax” because it is based on a percentage of hospital expenses — including uncompensated care for patients who can’t afford to pay. So in a way, the hospitals are paying twice for providing charity care. The leaders also say the looming fee has caused some hospital to cut jobs and put off expansions.
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The proposed bill, which follows Ohio Hospital Association recommendations, would:
- Subtract the cost of Medicare from the tax base
- Subtract uncompensated care from the tax base
- Reduce the tax base from 1.61 percent to 1.5 percent
“Ohio’s hospital community thanks Representatives Boose and Balderson for taking action against this new tax on hospitals, which is costing jobs, delaying necessary renovations and eliminating services in hospitals around the state,” said James R. Castle, the association’s president and CEO, in a written statement.
