Ohio Hospital Assessment Takes Effect - December 8, 2009

On November 30, Ohio hospitals paid their first installment of a hospital assessment adopted earlier this year as part of the state’s budget. The assessment imposes a 1.5 percent tax on hospital operating expenses in 2010. In 2011, the tax increases to 1.6 percent. Although hospitals will receive increased and supplemental Medicaid payments as a result of the assessment, according to the Ohio Hospital Association, each hospital will receive, on average, only 80 percent of the amount it pays under the assessment.