Providers protest Medicaid fee hikes

Ohio hospital and nursing home officials are saying that a proposal in Gov. Ted Stricklands budget plan that calls for hospitals and nursing homes to pay new fees will lead to lost jobs, higher patient costs and the potential closure of facilities (Source: “Hospitals object to fee for Medicaid,” Columbus Dispatch, March 1, 2009).

At issue is a proposal to charge Medicaid providers -- hospitals, nursing homes, facilities for the mentally retarded and managed care companies -- $1.3 billion in new fees in order to free up state funds for other uses.

"The state Medicaid budget is being balanced on the back of hospitals," said Tiffany Himmelreich, spokeswoman for the Ohio Hospital Association.

Ohio Medicaid Director John Corlett countered that the new fees are necessary for the state to keep up with increased enrollment and rising health costs.

“This takes pressure off the general revenue fund, maintains essential services, prevents rate reductions and provides greater long-term sustainability for the program," Corlett said.