Virginian-Pilot: Area hospitals are preparing “for a round of Medicaid spending cuts that executives say could be the worst in decades and lead to more cutbacks in their organizations. Rising health care costs and a surge in the number of Medicaid patients have increased the state’s obligation to the government health insurance program for the poor and disabled by $777.7 million over two years. The state also must find $1.2 billion to replace stimulus money that the federal government provided last year to help Virginia cope with rising health care demands and declining state revenue. That funding stops at the end of this year.” Former Gov. Timothy M. Kaine recommended in his budget proposal that Medicaid payment rates for hospitals be frozen. The General Assembly is trying to set a budget that deals with that as well as absorb a $1.9 billion shortfall in state revenues (Jeter, 2/8).

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