Hospitals had lobbied for a 3.8 percent increase, while insurers wanted a 0.8 percent increase. The two had compromised on a 2.1 increase, according to the report.
Although the hike will bring $230 million in new revenue for hospitals, the Maryland Hospital Association said that hospital costs for everything from supplies to pharmaceuticals are increasing by nearly 3 percent, which could mean layoffs or program cuts, according to the report.
Read about the 1.77 percent rate hike for Maryland hospitals.
