IL hospitals protect tax-exempt status in Medicaid legislation

Illinois' hospitals supported a legislative package this spring that cut their Medicaid rates by 3.5 percent, or $108 million this fiscal year. But in exchange, not-for-profit hospitals all but eliminated the threat of ever losing their coveted local property-tax exemptions. The package of bills also includes an enhanced hospital provider assessment program—a program that still requires federal approval—that would generate $190 million in new federal funding for hospitals. The program includes an additional $100 million in federal funds to the state for Medicaid providers other than hospitals.