EagleTribune.com, North Andover, MA

Boston and Beyond

September 12, 2013

Hospital taxes could change

(Continued)

Beardmore said he could not discuss negotiations with taxpayers since the number of hospitals involved is less than 10.

But Beardmore said his department considers revenue collected by hospitals for services that Medicaid covers taxable regardless whether the service is paid by private insurance. He said hospitals incorrectly claim that only revenue from services reimbursable by Medicaid is taxable.

Medicaid Director Katie Dunn said if hospitals bill for a service, it is taxed.

But Dunn also said the tax may need wholesale changes to make it more fair.

“Hospitals are no longer just hospitals. What we’re talking about are health care systems,” she said.

Kilfeather-Mackey proposed bringing in someone from her hospital to talk about the unfairness of taxing hospitals for providing a service that isn’t taxed if provided by a facility not defined in law as a hospital.

The commission agreed to her suggestion and also plans to hear from a spokesman for a small rural hospital.

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