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Medicaid cuts will challenge hospitals: Moody’s
Modern Healthcare

States will continue to look for savings in their Medicaid programs that will affect hospital reimbursements, and only good management, especially of expenses, can offset that trend, Moody’s Investors Service said in a new report. Medicaid spending represents about 22% of state budgets on average, and 37 states have cut Medicaid hospital reimbursement rates for their fiscal 2012 budgets, according to Moody’s. States needed to cut more for fiscal 2012 because higher federal match percentages approved in the 2009 stimulus act ended June 30, Moody’s said.