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Study cuts Medicare payments to California hospitals
California HealthCare Foundation

Already reeling from big cutbacks in Medicare funding, California hospitals would lose another 3-4 percent of their federal reimbursement under a new analysis ordered up by Congress. Rural areas of California would be hit hardest under the Institute of Medicine study. A separate proposal governing Medicare payments to physicians would slightly toward California’s advantage, but here again the rural parts of the state would lose ground. Payments would decline in 36 of 58 California counties, nearly all of them rural. The institute’s recommendations, which would cut hospital payments in 26 of 28 metropolitan areas in California, alarm the California Hospital Association.

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