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Governor, hospitals reach tentative agreement in dispute

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Connecticut Gov. Ned Lamont’s administration and the state’s hospitals have reached a tentative agreement to settle litigation over hospital taxes and state payments to hospitals.

The Connecticut Hospital Association sued in 2015, saying when the state began facing large budget deficits and reduced its annual supplemental payments, hospitals received less from the state than what they paid in tax.

The Democratic governor said the ongoing litigation “benefited neither party and certainly not the taxpayers of our state” and the settlement “will provide predictability and stability for both the state and the hospitals.”

Jennifer Jackson, CEO of the hospital association, said the agreement will improve health care to patients and benefit the state economy.

The tentative agreement will be submitted to the legislature for its review and approval.

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