California proposes $190M Medicaid cuts to hospitals

Facing a state budget deficit that has ballooned to $15.7 billion, California is proposing major cuts to hospitals and nursing homes to reduce healthcare costs, Gov. Jerry Brown announced Monday, California Healthline reported. "It is disappointing that the revised budget includes a rake-off of $150 million from private hospitals and more than $40 million from public hospitals," California Hospital Association President C. Duane Dauner said in a statement. "This proposal goes against a 2011 agreement between hospitals and state government … through the Medi-Cal hospital fee program."

Secretary of the state Department of Health and Human Services Diana Dooley said there's no magic number to finding a solution and stressed that the only thing to do is to cut back on areas of the most spending. Article

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