June 1, 2009 - 01:24 pm
News Feed: Ohio

Editorial: Unhealthy treatment

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They just call them fees instead of taxes. One of the most harmful is the proposed hospital franchise fee, which would cost Ohio's cash-strapped hospitals $127 million, $333 million or $411 million, depending on whose plan and estimates one adopts.

The basic arithmetic is this: The state would impose the fee on hospitals and apply the revenue generated to the state's share of Medicaid. That money, combined with similar assessments on other health-care providers, would draw about $2 billion in matching funds from the federal government for the state's Medicaid program.

In return, the governor proposed to raise Medicaid reimbursement rates to hospitals so that they recoup some of the franchise fees they pay.

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