State Medicaid Cuts to Cost Lawrence Hospital Nearly $750K

Medicaid cuts that Kansas Gov. Sam Brownback ordered in May to balance the state's budget will cost Lawrence Memorial Hospital approximately $500,000 to $800,000 in the next fiscal year.

The Lawrence Journal-World reports that the hospital's chief financial officer, Joe Pedley, told its board of directors about the effects of cuts Wednesday.

Pedley says a 4 percent overall cut to the Kansas Department of Health and Environment and Kansas Department for Aging and Disability Services, which is mostly coming from Medicaid, would lead to an estimated $462,000 in lost revenue for the hospital.

He adds that an approximately 4 percent cut to reimbursement rates would also cost the hospital another estimated $272,000.

The state must still get approval on the reductions from the federal Center for Medicare and Medicaid Services.