Ohio House Speaker Armond Budish has come up with an alternative which is winning cautious acceptance by the hospital industry.
The Beachwood lawmaker would allow hospitals to recover much of the "franchise fee" through increased payments from the state for caring for Medicaid patients.
Mary Yost, speaking for the hospital association, says that would provide `partial' relief for the financial pinch hospitals are feeling.
MARY YOST: "Hospitals in Ohio will continue to lose money on medicaid patients - they will continue to provide a great deal of care in terms of charity care, uncompensated care."
Medicaid provides health care to nearly 2 million of the poorest Ohioans.
Speaker Budish's plans to insert his proposal in a revamped state budget bill.
Cleveland Clinic attorney "Pudge" Henkel Junior is concerned that even if it passes the House, the state Senate could block it.
OLIVER "Pudge" HENKEL, Jr. : "Trying to balance the budget on the back of hospitals is a very difficult thing, and the hospitals would like very much to be reimbursed for the full amount of their contribution."