Arizona hospitals are preparing for cuts from the Arizona Health Care Cost Containment System, the state's Medicaid program, according to an Arizona Republic report.
AHCCCS provides health insurance for more than 1.3 million low-income and disabled Arizona residents, around 20 percent of the state's population. Since 2008, state hospitals have absorbed about $500 million in cuts and payment freezes from the program, and an additional 5 percent cut is scheduled for April.
According to Gov. Jan Brewer's administrator, AHCCCS will face a $1 billion budget gap next year because of rising demand for services and declining state revenue.
Hospitals are tackling the nearing cuts in different ways. Banner Health will attempt to preserve as many jobs as possible, but will attempt to save around $30 million by eliminating merit pay increases, according to the report. St. Joseph's Hospital is looking to grow revenue from non-Medicaid programs as well as reduce costs to offset the impact of the cuts.
Read the Arizona Republic report on Arizona hospitals.
Read more news on Medicaid:
-Childrens' Hospitals Losing "Orphan Drug" Discount Due to Reform
-U.S. hospitals Spent More Than $39B on Charity Care Last Year
AHCCCS provides health insurance for more than 1.3 million low-income and disabled Arizona residents, around 20 percent of the state's population. Since 2008, state hospitals have absorbed about $500 million in cuts and payment freezes from the program, and an additional 5 percent cut is scheduled for April.
According to Gov. Jan Brewer's administrator, AHCCCS will face a $1 billion budget gap next year because of rising demand for services and declining state revenue.
Hospitals are tackling the nearing cuts in different ways. Banner Health will attempt to preserve as many jobs as possible, but will attempt to save around $30 million by eliminating merit pay increases, according to the report. St. Joseph's Hospital is looking to grow revenue from non-Medicaid programs as well as reduce costs to offset the impact of the cuts.
Read the Arizona Republic report on Arizona hospitals.
Read more news on Medicaid:
-Childrens' Hospitals Losing "Orphan Drug" Discount Due to Reform
-U.S. hospitals Spent More Than $39B on Charity Care Last Year