AN ACT CONCERNING THE APPLICABILITY OF THE HOSPITAL TAX TO CHILDREN'S GENERAL HOSPITALS.

SB 1550 removes an exemption for children's general hospitals from Connecticut's hospital provider tax, requiring them to pay the same tax rates as other hospitals starting July 1, 2026. Currently exempt, these hospitals (defined as facilities licensed as short-term children's hospitals by the Department of Public Health) will now pay 6% on inpatient services and 10.4858% on outpatient services. The change generates an estimated $15.5 million annually in state revenue by ending their prior tax exemption. This affects only children's general hospitals, not specialty hospitals like psychiatric facilities, which remain separately defined under the law.