The Hospital and Healthsystem Association of Pennsylvania rejected a proposal in the governor’s budget that the trade group said would cut state Medicaid payments to hospitals by roughly $31.9 million. The trade group said Gov. Edward Rendell’s $66.4 billion budget would reduce overall Medicaid reimbursement by $73.4 million after factoring in the loss of federal funds that match state spending for the safety-net program.
Pa. hospital association decries proposed cuts
Rendell joined close to a dozen U.S. governors, according to the Center on Budget and Policy Priorities, whose proposed budgets assume Congress will extend federal aid for Medicaid that is set to expire in December. Federal funding for Medicaid increased temporarily under the American Recovery and Reinvestment Act. If extended through June 30, Pennsylvania could receive an estimated $850 million.
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