States Seek Federal Funds to Offset Medicaid Cuts to Rural Hospitals
States are pursuing federal funding over the next five years to support rural health care infrastructure as Medicaid payment cuts threaten rural hospital viability. Rural hospitals report the anticipated federal funds will not fully compensate for lost Medicaid revenue. The timing and amounts of federal funding remain unclear, while Medicaid cuts are already affecting hospital operations. This creates financial pressure on rural providers that serve high Medicaid populations and operate on thin margins.
Rural hospitals' financial stability directly affects Medicaid beneficiary access to care, network adequacy requirements for managed care plans, and state decisions on hospital supplemental payments and provider assessments.
Finance · Managed Care
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