State Budget Proviso Aims to Protect Small & Rural Hospitals

The FY 2011-12 state appropriation bill currently being debated on the Senate floor contains a provision that allows the Director of DHHS to access residual cigarette tax funds in the Medicaid Reserve Funds. The intent is for the funding to be used to ensure access to healthcare which is to be defined by the Director. Based on conversations with DHHS staff and remarks made by the Governor, a portion of these funds is intended to be used to protect the financial stability of small and rural hospitals that may be at risk due to state budget cuts. To read the language, click and scroll down to 90.16. (SR: Health Care Maintenance of Effort Funding).

05-04-2011 09:57 (EDT)