The question of increased taxes due by Connecticut hospitals to the state has been much in the news recently. ValleyNewsNow.com therefore asked Peg Arico, Director of Public Rations and Communications at Middlesex Hospital (which also operates the Shoreline Medical Center in Westbrook) to comment on the impact to the hospital of these tax increases along with cuts in state aid.
She responded, “As a result of the increases in hospital taxes approved by the governor and the state legislature for fiscal year 2016, Middlesex Hospital will pay the state approximately $21 million this year in taxes, compared to $14 million in 2015.” Arico continued, “As part of this tax process, this year’s state budget provided for supplemental payments to Middlesex Hospital of about $6 million. The governor cut these payments to zero back in September. However, recently the state legislature voted to reinstate about half of his funding.”
“Despite the negative impact of all of these changes,” Arico noted, “the hospital has managed to maintain a positive operating gain so far this year, but its operating performance has declined significantly. Hospitals throughout the state are experiencing similar financial issues, due to the enormous increase in hospital taxes imposed by the state.” She continued, “Even before the recent increase in taxes by the state, Middlesex Hospital, for the past several years, has been proactive in its fiscal management and has been implementing various measures to improve the efficiency its operations. Providing high quality and safe patient care to the community is the Hospital’s primary mission. In developing strategies to address the impact of these increased state taxes, Middlesex Hospital has taken careful and deliberate steps to ensure that patient care will not be negatively affected.”
Arico concluded, “In essence, Middlesex Hospital, like hospitals throughout the state, is ‘doing more with less.’ However, Middlesex is now quickly approaching a “tipping point.” At the current time, all Connecticut hospitals have fewer resources available to invest in the future. If the state imposes additional tax increases on hospitals, the impact on Middlesex Hospital’s finances will become increasingly challenged, and will likely necessitate more drastic cost-cutting measures.”