Hospitals Denounce Ill. Gov.'s $2.7B Medicaid Savings Plan

Law360, New York (April 20, 2012, 4:08 PM EDT) -- Warning that the Illinois Medicaid system could soon implode, Democratic Gov. Pat Quinn on Thursday called for $2.7 billion in savings achieved partly through rate reductions for health care providers, drawing a swift rebuke from hospitals.

One-quarter of the budget gap — $675 million — would be closed through lower payments to hospitals, nursing homes, pharmacists and other providers, the governor’s office said.

The Illinois Hospital Association reacted with scorn, saying a “reduction of this magnitude will jeopardize patients’ access to quality health care.”

The proposal...
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