Expected Alabama Medicaid cuts put on hold, for now; hospitals say that's potentially disastrous

Alabama hospitals were told by the Alabama Medicaid Agency last week they faced drastic cuts, according to the Alabama Hospital Association. Fearing the cuts would be catastrophic for many hospitals, the association had an emergency meeting with Gov. Bob Riley and Medicaid Commissioner Carol Steckel. Panicked hospital executives told Riley and Steckel the cuts, which were supposed to be effective retroactively to Oct. 1, would put many hospitals out of business or force them to reduce services.