Medicaid cuts will hurt hospitals

NORFOLK, Va. (WAVY) - Hospitals and nursing homes will soon be forced to make cuts as the state's new budget slashed Medicaid reimbursements.

For every dollar billed to Medicaid right now, hospitals get 72 cents. According to the new budget, next year hospitals will get just 68 cents on the dollar and the year after that, 64 cents. And it could get even worse.

Children's Hospital of The King's Daughters in Norfolk will be hit hardest by the state's new budget, with 53 percent Medicaid inpatient days (or days spent in the hospital by patients insured by Medicaid). CHKD has the highest rate of Medicaid insured patients in the state. Medicaid, on average, pays out less than other insurers.

10 on your side called for a comment today.

A spokesperson said they are still looking at the numbers to determine how much they will be affected.

Back in January, CEO Jim Dahling talked to us about the possibility and said: "Would I tell you that I wanted to cut the Hematology and Oncology program, the Child Abuse program, any of the other programs I could name? Absolutely not."

Now, he may not have a choice. All hospitals and nursing homes will be searching for ways to save.

On the other hand, Beach Health clinic Director Susan Hellstrom said they are ready. The free clinic, on Holland Road finished an eight month expansion just in time.

Hellstrom said the building--now doubled in size--has added five exam rooms and an area for children.

"Primarily, we don't see many children...now if they're not going to increase the rolls for FAMIS then we'll have to start recruiting pediatricians," she said. FAMIS is the state's health insurance for children.

But it is still hard to say how deep the cuts will be. That now depends on the federal government.

In his State of the Union address in January, President Obama promised extra federal funds to help with Medicaid.

Those dollars have not yet been approved, but state legislators are counting on them in the new budget. If the feds don't approve the extra money, that Medicaid reimbursement could go down to 58 cents or less in the coming years.