Connecticut Gov. Dannel P. Malloy’s administration has delayed about $140 million in payments to the state’s acute-care hospitals, reports The Hartford Courant.
The move came in response to recent projections showing declining state income-tax receipts. Anticipated income-tax revenues have been lowered by nearly $200 million for this fiscal year, according to Connecticut’s Office of Fiscal Analysis.
“Please be advised that I have asked the Department of Social Services to hold on making any additional supplemental payments … until we have identified the steps needed to address this fiscal year’s budget deficit,” Connecticut Office of Policy and Management Secretary Benjamin Barnes, told hospitals. “While I hope to have this task completed later this month, due to the significant drop in revenues, I am not optimistic that we will be able to move forward with any further state payments this fiscal year.”
“His actions are breaking the healthcare system and increasing costs for patients,” said Jennifer Jackson, chief executive of the Connecticut Hospital Association.