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Hospitals aren't fans of Scott's budget proposal

By Lynn Hatter

Tallahassee, FL – Governor Rick Scott's budget may be getting tentative support from many education officials, but the healthcare sector is not pleased. Lynn Hatter reports the state's hospitals are giving a plan to cut 1.8-billion in Medicaid payments a thumbs-down, and say the cuts would be catastrophic.

Florida's hospitals began pushing back against the governor's plan to cut Medicaid payments almost immediately. They say the cut around 1.8-million, would be close to a 40-percent Medicaid payment cut. Florida Hospital Association President Bruce Rueben says the governor's recommendations have his group very nervous.

"That size of a cut to one sector in healthcare, hospitals, is not sustainable. It's not realistic to think you can cut hospitals by another two-billion dollars."

Hospitals have lost almost a billion dollars in Medicaid payments since 2005. The governor's proposal would require both state and federal approval. The billion dollars cut from hospitals would be diverted to the education budget, which lost nearly as much in cuts early this year.