The State of Virginia's plans to cut $4.5 billion from its budget in the next two years will mean $800 million in losses for state Medicaid, factoring in matching federal funds, according to a release from the Virginia Hospital and Healthcare Association.
With the cuts, Medicaid payments to hospitals for inpatient services would drop from 72 percent of costs now to 68 percent in fiscal year 2011 and to 64 percent in fiscal year 2012.
"While the state's fiscal challenges are daunting, there is no silver bullet strategy to cut Medicaid spending in the near term that won't cause serious harm to our healthcare delivery system and reduce healthcare jobs,” said Laurens Sartoris, president of the association.
Read the Virginia Hospital and Healthcare Association's release on Virginia Medicaid.
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