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Meaningful Health Care Informatics Blog

Aug 20 2010   11:00PM GMT

North Carolina faces More reimbursement cuts

Posted by: RedaChouffani

This week North Carolina maybe the next victim to state cuts made to Medicaid.  This further increases the presses on physicians and Hospital organizations.
This week, it was clear to many physicians in North Carolina that further cuts in Medicaid are bound to become reality.  This will add more to the already shrinking reduced reimbursements and cuts.  But state lawmakers and governors are already facing some of the toughest budgets since the great depression and deep cuts to social services, public safety and health care are inevitable.
The State of North Carolina Administration is planning a cut in Medicaid provider rates at approximately $27 million in state funds; this will total in over $100 million in payment reduction.
Clearly, it is not just the physicians who will suffer from these cuts, but also hospitals and patients.  With an anticipated increase in Medicaid patients due to the recently passed Healthcare Reform and the Medicaid expansion, more patients will find it difficult to get providers to accept their insurance.  This would force many to seek Community health centers, or hospitals.
Then hospitals will then suffer from increased patient volume with insurance that has already a reduced reimbursement rate.  Patients will be frustrated by the reduced amount of practices.
Unfortunately there is no simple or easy solution to this.  If State law makers do not make the cuts necessary, then the deficits of the state increase.  Despite the recent federal funds awarded to NC as part of the Budget Act in July 2010, the state will still face the challenge that many other states face in this economy, and unfortunately so will the physicians in the state.

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