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State responds to Medicaid cuts

Posted: Updated: July 13, 2012 08:36 PM

By Jillian Corder

MONROE, La. (KNOE 8 News) - Federal Medical Assistance has been reduced by 7 percent, depleting Louisiana Medicaid by almost $300 million for the 2013 fiscal year.

The Department of Health and Hospitals has responded to the cuts by consolidating certain facilities, reducing funding to health care providers, and by strengthening the Medicaid application process.

These cuts are devastating for smaller, rural clinics, but they are impacting larger hospitals as well. St. Francis Hospital in Monroe is estimating a $1.1 million loss, but ensures to patients that quality health care is still a top priority.

"We aren't in the business to make money. We are in the business of taking care of people," says Louis Bremer, President and CEO of St. Francis, "but at the end of the day, we've still got to be able to make a certain amount of money in order to buy new equipment...it certainly means that we are going to have to tighten our belt."

Nursing homes will also face a large reduction in funding. Medicaid reimbursement for nursing homes will go down by 11 percent, but the Department of Health and Hospitals plans to backfill this $23.2 million gap with trust fund monies.

Joe Donchess, Executive Director of the Louisiana Nursing Home Association, says that decisions made by the DHH are bittersweet. More money will be taken from the trust funds than the LNHA expected, but it will cover their loss from the cuts.

"Until we can turn this cycle of overspending around, we have to get back to the basics," says Donchess, regarding the big picture of reduced federal funding.

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