Hospital Tax Clears Georgia House

by Dave Williams
Staff Writer
Atlanta Business Chronicle
March 26, 2010

The Georgia House approved legislation Friday that would levy a new fee on hospitals to shore up the state’s financially ailing Medicaid program.

The bill, which passed 141-23, and now goes to the Senate, would impose a 1.45 percent tax on net patient revenues. It would raise $169 million for Medicaid, the joint state-federal health-care program for the poor and disabled.

Medicaid enrollment has been growing steadily, in large part a byproduct of the recession’s impact on Georgians’ finances

The version of the bill that cleared the House was a compromise between Gov. Sonny Perdue and the state’s hospital lobby.

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