Rep. Ferguson Stands with Hospitals in Fight against Further Taxes and Budget Cuts

State Rep. Michael Ferguson (R-138) joined doctors, patients, and hospital executives at the Capitol complex in Hartford for a press conference on Hospital Day to recognize the crucial and wide-ranging services provided by regional hospitals and their ongoing struggle with tax increases and budget cuts.

Speakers included Jennifer Jackson, CEO of the Connecticut Hospital Association; John Murphy, MD, President and CEO of Western Connecticut Health Network; and Kurt Barwis, President and CEO of Bristol Hospital.  They each spoke on the services Connecticut hospitals provide to their communities which goes beyond quality and safely delivered healthcare and includes job creation and community outreach programs.

“It is an unfortunate act of financial desperation for the state to break centuries of tradition and tax hospitals in order to make up for shortfalls in the budget,” said Rep. Ferguson.  “As an employee of Danbury Hospital, I understand all of the ways hospitals serve as economic engines of their communities, providing enormous benefits that drive growth in the health and medical field, as well as all of the ways they work to make their communities healthier.”

Connecticut hospitals currently pay a combined $556 million in state taxes every year, in spite of their status as non-profits and historically tax-exempt.  Governor Dan Malloy’s FY 2017 – 2018 budget includes a proposal to allow municipalities to levy property taxes on hospital land and buildings. 

“A state that taxes hospitals is not a state that anyone wants to do business in, because it is a sign of that the state’s fiscal priorities are completely misguided,” said Rep. Ferguson.  “The state has made making profits almost impossible for hospitals who are still reeling from new taxes levied against them in 2012.  This proposal would do immeasurable damage to hospitals by decreasing profit margins to a degree where cuts cannot be avoided, subsequently hurts cities whose hospital may be its biggest employer and economic driver.”

In addition to the economic consequences it will have, hospital executives spoke about cuts to capital investments and services for low-income patients.

“I cannot sit back and watch the state of Connecticut try to balance its budget on the backs of hospitals, who are already taxed far more than corporations in Connecticut,” said Rep. Ferguson.  “Between corporate taxes and Medicaid underpayments, we are breaking promises and harming the ability of hospitals to provide for their communities.  I stand with hospitals to shield them from the awful fiscal management of the state budget so that patients can continue to receive quality and affordable care.  For any legislator who would continue to grab money from hospitals, the people need to know exactly who they are.”

State Representative Michael Ferguson represents the 138th district communities of Danbury, New Fairfield, and Ridgefield.

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Submitted by Danbury, CT

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