Ohio: Hospital Association

June 1, 2009 - 01:24 pm
NEWS FEED: Columbus Dispatch

Editorial: Unhealthy treatment

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.

March 18, 2009 - 09:12 pm

Cleveland Clinic official tells lawmakers franchise fee would cut 400 jobs

"If this fee goes through without any adjustment, we really don't see any recourse but to eliminate jobs, and based on the fee, the elimination of jobs would amount to somewhere in excess of 400," said Oliver Henkel, chief government relations officer.

Henkel told lawmakers that the proposed franchise fee would cost the Clinic alone more than $40 million over the next two years. His remarks to the House's Human Services Subcommittee wrapped up a parade of testimony from Ohio hospital officials offering gloomy scenarios of layoffs and service cuts if the franchise fees are allowed to stand. Also testifying were officials from St.