Governor, Hospital Association At Odds Over Hospital Tax

A 90 million dollar deficit in the Mississippi Medicaid program has some elected officials and the Mississippi Hospital Association butting heads over filling the hole. MPB's Stephen Koranda reports.

Governor Haley Barbour is pushing for a 90 million dollar tax on hospitals to cover a shortfall in the Medicaid program. He says hospital officials helped design a previous 90 million dollar tax they used to pay, which allowed them to get more money from the federal government.

“The Hospital Association, which asked for this tax, now says they don’t want to pay their fair share anymore, and if they don’t it has a terrible, destructive effect on the budget.”

“That in fact is not the case. The hospitals never paid 90 million dollars.”

That's Mississippi Hospital Association president Sam Cameron. He says what hospitals used to pay was more of a loan. The hospitals put in the money, which was used to draw down federal matching dollars. Hospitals then got their money back, plus some additional dollars. Cameron says with the downturn in the economy, 50 Mississippi hospitals are just breaking even or are in the red, and this new tax could require costs to be passed on to patients, or worse.

“It will lead to a reduction in services. It will lead to a reduction in the staff employment in hospitals, and we think this is totally not fair for the patients.”

Lawmakers are trying to reach an agreement on a compromised amount. Legislators are hoping to have a compromise by the time the session resumes on the 26th.