State budget cuts to force hospitals to eliminate services, staff

States, including Colorado, Connecticut, Florida, Nebraska, New Hampshire New York, North Carolina, Oregon, Pennsylvania, South Carolina, Texas, Virginia, and Washington face Medicaid reimbursement cuts to their hospitals, according to a Nashua Telegraph article today.

For example, in New Hampshire, anticipated state Medicaid reimbursement cuts are estimated to total $230 million, notes the article. As a result, Southern New Hampshire Medical Center, which would incur a loss of $9.4 million, and St. Joseph Hospital, a loss of $8.6 million, are considering eliminating or reducing services that are less than profitable and also considering reducing staffing levels.

In South Carolina, a new law went into effect today that cut Medicaid reimbursements for hospitals and physicians by 2 percent, on top of the 3 percent cut in April, reports ABC News.

Despite the looming Medicaid cuts to hospitals, a study released this week revealed that Medicaid access does improve care and reduce overall costs. Patients were 25 percent more likely to report excellent health with Medicaid access, and patients were less likely to skip paying their healthcare bills by 40 percent, according to the study by the National Bureau of Economic Research, Harvard School of Public Health, Massachusetts Institute of Technology, and Providence Health & Services.

For more:
- read The Nashua Telegraph article
- read the ABC News article

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