Hospitals fight multimillion dollar state Medicaid cuts

Hospitals in Florida will see Medicaid payments slashed by $2 billion under a new state budget for 2012, joining recent hefty reimbursement cuts in New Hampshire, Arizona, and California.

Designed to save state dollars, the plan would pay hospitals an even rate for Medicaid services, cut Medicaid coverage from 45 hospital stays to 23 per year, and limit emergency room visits to 12, reports the Palm Beach Post.

According to Florida hospitals, next year's budget would devastate their ability to provide care. For instance, St. Mary's could lose $11 million in Medicaid funds, Jackson Memorial Hospital could be hit with a $153 million reduction, and Miami Children's Hospital could lose $34 million in Medicaid payments, the article notes.

The Safety Net Hospital Alliance of Florida and its 23 hospitals are going to urge legislators to reject the budget, President Tony Carvalho told the Palm Beach Post.

Hospitals fighting similar cuts in New Hampshire are not finding an easy battle. The state attorney general office's last week asked that a lawsuit filed by New Hampshire hospitals be thrown out, claiming the law prevents the state's reimbursement rates from being legally challenged, reports the Concord Monitor.

The lawsuit in question involves ten hospitals, which during the summer sued New Hampshire to block the two-year budget that calls for slashing Medicaid payments by $115 million, arguing that it would prevent equal access to medical care for low-income patients.

The state is negotiating with the Centers for Medicaid & Medicare Services to determine whether its reimbursement plan is acceptable, according to the Monitor.

For more information:
- read the Palm Beach Post article
- here's the Concord Monitor article