ctpost.com, April 29, 2011
Despite a strong push-back from the medical community, Gov. Dannel P. Malloy is sticking with a controversial plan to tax hospital income, one the state acknowledges will take a $7.4 million bite out of Greenwich Hospital's net annual revenues. Gian-Carl Casa, undersecretary for legislative affairs at the state Office of Policy and Management, emphasized that the graduated levy has been replaced with a flat tax of 4.6% Hospitals would have paid 5% tax on the first $50 million in revenues under Malloy's original plan, with the levy increasing to 7.5% on the next $250 million in revenues and finally to 10% for income over $300 million. Greenwich Hospital estimates that its annual operating gain is currently $4.2 million. Connecticut would become eligible for $150 million in federal funds that the state can put toward deficit-reduction as a result of the hospital tax plan, which would no longer exempt Medicare payments from the levy.