Hospital Tax, Medicaid Cuts, Eliminating the Sales Tax Exemption for Not-for-Profit Hospitals or the Tobacco Fee Increase.

At Issue:
To address a statewide budget shortfall in FY2011, Governor Sonny Perdue and some members of the Georgia General Assembly have recommended that the General Assembly pass a tax on adjusted gross revenues for hospitals and managed care plans, reduce Medicaid by 19%, or eliminate the state sales tax exemption for not-for-profit hospitals.

Position:
Gwinnett Medical Center opposes a tax on hospitals as it is a detriment not only to GMC, but to the communities we serve. By imposing a tax, GMC will be forced to divert revenues to the state—without any guaranteed return for our community. Medicaid cuts or elimination of the sales tax exemption for not for profit hospitals will have an equally damaging impact. In essence, hospitals are being asked to cover budget shortfall. As an alternative, GMC supports increasing the state’s fee on tobacco from 37 cents to $1.37, as a revenue generating opportunity that will alleviate the current budget crisis as well as bring health improvement to the state.

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