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;
(5) "Other allowances" means any financial requirements, as authorized by the Office of Health Care Access, 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;
(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.)
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.
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.