NJ surgery-center tax to help hospital funding
Ambulatory Safety Monitor, July 7, 2004
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The New Jersey Legislature increased the state's hospital charity-care fund by 53%, coming at the expense of ambulatory surgery centers.
Lawmakers levied a 3.5% tax on gross revenue for all ambulatory centers, with a tax limit of $200,000 per center, to fund the charity-care pool. The state's 83 hospitals will share the $583-million fund, which will ensure that each hospital receives at least 43 cents on the Medicare dollar for care for the uninsured.
The New Jersey Hospital Association lobbied for the funding increase. Many physicians in the state believe the legislation may give hospitals an unfair advantage over ambulatory centers, said John Shaffer, a spokesman for the Medical Society of New Jersey.
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