The simple average operating margin of hospitals in Mississippi is 1.23% (based on 2005 cost reports). Approximately 50% of all hospitals already operate at a loss or a margin of less than 1%.

An additional 1% gross revenue tax on hospitals would bring the simple average profit margin down to a NEGATIVE 0.82%. (based on 2005 cost reports). A 1% gross revenue tax on hospitals would result in a levy of $135 million on the sick people of Mississippi (based on 2005 cost reports).

HOSPITAL FACTS

Hospitals already pay Medicaid over $140 million in taxes, IGTs, and other matching funds each year.

The revenue from hospitals funded almost $450 million of the $685 million paid to hospitals for inpatient and outpatient services (66%) in 2006.

Medicaid should be fully funded without additional taxes on the sick, aged, and infirmed.

MEDICAID FACTS

Medicaid covers approximately 600,000 of the Mississippi ’s poorest citizens.

Mississippi receives the nation’s highest federal match – currently at 76.29%.

The program consists of federally mandated services as well as optional services.

The amount, duration, scope, and reimbursement levels are determined by the Mississippi legislature.