Indiana Will Cut Medicaid Payments to Hospitals by 5% Next Year

To fill a budget shortfall, the State of Indiana has cut Medicaid payments to hospitals by 5 percent next year, saving the state $10.6 million, according to the Fort Wayne Journal Gazette.

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In a statement, the Indiana Hospital Association responded that state Medicaid payments are already less than 50 cents for every dollar of care provided.

With hospitals treating more Medicaid and uninsured patients than before and having fewer patients on better-paying commercial health insurance to make up the losses, the
IHA warned that “hospitals will be forced to make difficult decisions about what types of services they can provide.”

Contacted by the newspaper, Mike Schatzlein, CEO of Lutheran Health Network, said of the cuts, “We will have to tighten our belts, but we are not going to deny anybody care.”

Read the Fort Wayne Journal Gazette’s report on Indiana Medicaid cuts.

Read Indiana Hospital Association’s release on Indiana Medicaid cuts.

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