Connecticut Senate Bill SB00275

Connecticut 2017 Regular Session

• Introduced: 1/18/17
• Refer: 1/18/17

Caption

An Act Ensuring Timely Payment For Hospital Services.

Summary

SB00275, titled 'An Act Ensuring Timely Payment For Hospital Services', focuses on enhancing the financial stability of hospitals by mandating the timely distribution of funds from the state's supplemental inpatient payment pool. The bill amends sections of the state statutes to require the Commissioner of Social Services to issue quarterly payments to eligible hospitals that are equal to one-quarter of their annual allocation from this pool. These payments are intended to ensure that hospitals maintain adequate funding for their services, thus supporting the overall healthcare infrastructure within the state. One of the key stipulations in the bill is the timeline for these payments; the Commissioner must ensure that funds are distributed by the last day of the second month of each quarter. Additionally, the legislation prohibits the diversion of these payments for any other purpose, ensuring that hospitals receive their allocated funds directly. This mechanism is framed to prevent delays that could adversely affect hospital operations, particularly in light of financial strains faced by healthcare providers. Importantly, the bill allows hospitals to recover payments through tax offsets if the Commissioner fails to make timely payments. This provision is likely aimed at prompting adherence to the payment schedule by creating financial repercussions for delays. It addresses a critical concern raised by hospitals regarding the reliability of state funding flows and seeks to empower these institutions to act on past due payments effectively. Discussions around the bill indicate a broader recognition of the essential role that hospitals play in community health and the need for consistent state support to avoid jeopardizing service availability. However, as with many pieces of legislation, some stakeholders could voice concerns regarding the bill's impacts on state budget allocations and the potential for increased fiscal strain if payment commitments are not met. The balance between ensuring hospital funding and managing fiscal responsibilities remains a point of contention in these discussions.