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Posted: 3:26 a.m. Tuesday, Jan. 15, 2013

Lawmakers may get break on "bed tax"

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Grady Memorial Hospital photo
Jason Getz, jgetz@ajc.com
A patient walks out of the outpatient clinic wing with a IV pump for a break at Grady Memorial Hospital Monday afternoon in Atlanta, Ga., January 7, 2013. Patients use the outpatient clinic for primary care and specialty outpatient care.

By Sandra Parrish

ATLANTA —

Gov. Nathan Deal may have come up with a way to extend a fee against hospitals without requiring state lawmakers to vote for what many call a "bed tax".

Floor leaders for Deal has introduced legislation that would shift the responsibility of levying the provider fee from legislators to the Department of Community Health. The governor currently appoints the nine-member DCH board.

The fee, which is a percentage of a hospital's net revenue, allows the state to draw matching federal dollars which are then doled out to hospitals based on the number of Medicaid care they provide.

It was passed by lawmakers two years ago to fill a $500 million shortfall in the Medicaid budget that threatened to shut down hospitals such as Grady.  The current fee expires in June.

The state faces a $374 million shortfall in Medicaid funding for the remainder of this fiscal year and nearly $400 million next year.

By shifting the burden to DCH, lawmakers wouldn't be forced to make the decision on what some consider a tax increase. 

House Speaker David Ralston says the concept isn't new a one and has been done with the nursing home industry for many years.

"As long as we maintain legislative oversight I think it will be something we'll take a look at," he says.  "I'm not ruling anything in or out at this point but I thinks it's a reasonable proposal."

The fee would expire in 2018 at which time lawmakers hope to come up with a permanent solution.

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