Unless Congress acts by October, the federal government will cut $8 billion from this year’s budget — then make the same cut each year for the next three years — for a Medicaid program intended to …
being cut in each of the first few years. But after hospitals lobbied Congress to postpone them, the revised budget deals meant future cuts would be deeper and immediate — leading to the $8 billion annual cuts currently slated for the coming years.
Paula Chatterjee, the lead author on the study and the director of health equity research at the Leonard Davis Institute of Health Economics at the University of Pennsylvania, said hospitals aren’t transparent about how they spend the extra money and that the states that receive the most money do not always have the highest rates of uninsured residents.
Beth Feldpush, the senior vice president of policy and advocacy for America’s Essential Hospitals, which represents 300 safety-net hospitals, said these facilities’ 3% average operating margin would disappear if not for DSH money. “Members of Congress recognize there are pockets of underserved communities in most congressional districts,” she said.
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