Georgia GOP leaders hope to avoid snags over hospital tax

Georgia’s governor and legislative leaders hope to quickly extend an annual tax on hospitals that covers a large share of state health care expenses when lawmakers return to the Capitol in January.

The quarterly charges, disparaged by opponents in the past as a “bed tax,” are set to expire on June 30. The state’s Medicaid budget could lose more than $880 million if lawmakers don’t renew the program.

The fees first adopted in 2010 are a percentage of Georgia hospitals’ net patient revenue and also allow Georgia’s Medicaid program to draw millions more in federal support for treating low-income residents. The tax yielded more than $280 million from hospitals and nearly $600 million in matching federal support.

Hospitals that see high numbers of low-income patients get the money back through a higher payment rate from the Medicaid program.

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