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Hospital CEOs redefining healthcare payment structure amid looming Medicaid cuts

By Albany Business Review  
   December 31, 2014

Starting Thursday, Medicaid payments to many doctors are expected to drop by an average of 43 percent. The cuts are among the most important stories heading into 2015. Essentially, they involve the sun setting of a two-year pay raise for doctors included in the Affordable Care Act. That was because the federal law sought to properly fund its expansion of Medicaid, a health care program primarily for low-income people. After spending about $5.6 billion to directly fund that two-year pay raise, the Medicaid payment rate cuts are expected to take effect in 2015, according to a report by Urban Institute, a research group.

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