The Oklahoma Health Care Authority notified healthcare providers Tuesday it plans to cut Medicaid reimbursement rates by 25 percent as a result of the state's projected $1.3 billion budget shortfall in fiscal year 2017, reports KFOR.
The proposed 25 percent cut would reduce the Medicaid reimbursement rate to 64.9 percent of the amount providers in the state receive for caring for Medicare patients.
Before the reimbursement reductions are finalized, the proposal must go through a series of public hearings over the next 60 days. The healthcare authority warned rates could drop even further should the state cut more healthcare funding.
Over the past two years, the Health Care Authority has lost more than $868 million in state and federal funding due to state budget issues.
Health Care Authority CEO Nico Gomez expressed concern about the possible effect reimbursement cuts will have on the state's rural care centers.
"From a business standpoint, I'm afraid many providers will close their doors to our patients," Mr. Gomez told Oklahoma Watch. "In some cases, especially in rural parts of our state, healthcare professionals will have to move their business to larger communities in order to survive financially."
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