Gov. Jim Doyle says he can’t understand why hospital officials aren’t applauding his plan to tax hospitals.
The two-year state budget proposal envisions a 1 percent tax on gross revenues at the state’s 132 hospitals, which Doyle said would generate $418 million that would bring in $575 million in federal matching funds. Most of the money would be used to increase reimbursements to hospitals for care provided to low-income people under the Medicaid program. The rest would apparently cover other Medicaid and health costs.