Economic stimulus may send $100B-plus to healthcare

The healthcare industry stands to gain more than $100 billion from the $775 billion economic stimulus plan that President-elect Obama and congressional Democrats are putting together.

Insiders say that most likely, the vast majority (approximately $80 billion) will go to shoring up state Medicaid programs. Apparently Obama has gotten the message that states have been put in a bad position, with failing budgets and increasing pressure on Medicaid programs with massive layoffs across the country.

The other $20 billion likely would go to beginning to update healthcare delivery with health IT. That money probably will be distributed as pay-for-performance rewards, with some of it being doled out as grants to hospitals and healthcare systems that need help building their IT infrastructure.

To learn more about the health care implications of the stimulus package:
- read this Politico piece

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