2011 Connecticut Code
Title 12 Taxation
Chapter 211a Hospitals Tax
Sec. 12-263a. Definitions.

      Sec. 12-263a. Definitions. As used in sections 12-263a to 12-263e, inclusive:

      (1) "Hospital" means any health care facility or institution, as defined in section 19a-630, which is licensed as a short-term general hospital by the Department of Public Health but does not include (A) any hospital which, on October 1, 1997, is within the class of hospitals licensed by the department as children's general hospitals, or (B) a short-term acute hospital operated exclusively by the state other than a short-term acute hospital operated by the state as a receiver pursuant to chapter 920;

      (2) "Gross revenue" means the amount of a hospital's total charges for all patient care services minus any refunds resulting from errors or overcharges;

      (3) "Contractual allowance" means the percentage amount of discounts that are provided to nongovernmental payers pursuant to subsections (c), (d) and (e) of section 19a-646;

      (4) "Uncompensated care" means the cost of care that is written off as a bad debt or provided free under a free care policy that has been approved by the Office of Health Care Access division of the Department of Public Health;

      (5) "Other allowances" means any financial requirements, as authorized by the Office of Health Care Access division of the Department of Public Health, of a hospital resulting from circumstances including, but not limited to, an insurance settlement of a liability case or satisfaction of a lien or encumbrance, any difference between charges for employee self-insurance and related expenses. For fiscal years commencing on and after October 1, 1994, "other allowances" means the amount of any difference between charges for employee self-insurance and related expenses determined using the hospital's overall relationship of costs to charges as determined by the Office of Health Care Access division of the Department of Public Health;

      (6) "Net revenue" means the amount of a hospital's gross revenue minus the hospital's (A) contractual allowances, (B) the difference between government charges and government payments, (C) uncompensated care and (D) other allowances;

      (7) "Hospital gross earnings" means the amount of a hospital's net revenue minus (A) the amount that is projected to be received by the hospital from the federal government for Medicare patients, based on the hospital's budget authorization, and (B) the amount that is projected to be received by the hospital from the Department of Social Services, based on the hospital's budget authorization;

      (8) "Patient care services" means therapeutic and diagnostic medical services provided by the hospital to inpatients and outpatients, including tangible personal property transferred in connection with such services.

      (P.A. 94-9, S. 21, 41; P.A. 95-257, S. 12, 21, 39, 58; P.A. 97-2, S. 2, 8; P.A. 99-173, S. 31, 65; P.A. 00-174, S. 68, 83; P.A. 10-179, S. 95.)

      History: P.A. 94-9 effective April 1, 1994; P.A. 95-257 replaced Commissioner and Department of Public Health and Addiction Services with Commissioner and Department of Public Health and replaced Commission on Hospitals and Health Care with Office of Health Care Access, effective July 1, 1995; P.A. 97-2 amended definition of hospital in Subdiv. (1) to exclude children's general hospitals, effective the later of October 1, 1997, or upon the date of federal approval or federal determination that no approval is required pursuant to Sec. 19a-670a (actual effective date was October 1, 1997); P.A. 99-173 amended Subdiv. (1) to exclude short-term acute care hospitals run by the state, effective June 23, 1999, and applicable to calendar quarters commencing on or after July 1, 1999; P.A. 00-174 added Subdiv. (8) defining "patient care services", effective May 26, 2000, and applicable to all tax periods open on said date; P.A. 10-179 amended Subdivs. (4) and (5) by replacing "Office of Health Care Access" with "Office of Health Care Access division of the Department of Public Health".

      Subdiv. (2):

      P.A. 00-174, enacted after plaintiff's appeal was filed, clarified Subdiv. (2) to provide that term "patient care services" included tangible personal property transferred in connection with rendering of such services; legislative history indicated that relevant provisions of the act were intended to be clarifying and nonsubstantive, therefore court affirmed applicability of such clarification to pending case determining that tax on hospital's gross earnings applied to charges for tangible personal property used in the course of providing patient care services. 265 C. 511.