Medicaid provider tax funding restored for hospitals

The Health Care Financing Administration will again allow hospitals to tax providers to generate more federal matching funds for Medicaid; the hospitals then return the money to physicians in the form of higher payments. The rules, published on Aug 13, 1993, reverse interim rules published on Nov 24, 1992.
In a regulatory about-face, hospitals again will be allowed to generate more federal matching funds for their state's Medicaid programs by taxing providers and returning the money to them through [...]