According to hospital officials, two elements in Gov. Strickland’s budget for 2010 and 2011 relating to Medicaid could lead to these cuts.
First, the budget includes a hospital corporate franchise fee, which the Ohio Hospital Association estimated could cost hospitals an additional $598 million during the two-year period. This accounts for 1.2 percent of hospitals’ total facility costs, including charity care. Hospital officials say that as a result of this fee, hospitals may be forced to cut jobs and services, and income tax revenue would be lost.
Second, the budget includes a "non-contracting" provision, which would force hospitals into non-negotiated contracts with private Medicaid managed care plans and lower reimbursement rates for Medicaid.
The hospitals are talking with the governor’s office to solve the "inequities" that they see in the budget, according to the report.
Read the MedCity News’ report on Ohio hospitals’ budget warnings.
