The Louisiana Department of Health and Hospitals has cut Medicaid payments for hospital services by 7.16 percent to reduce the state's budget deficit.
The cuts were implemented through a series of emergency rules, and will affect acute-care hospitals, inpatient rehabilitation facilities, inpatient psychiatric facilities, long-term care hospitals and hospital outpatient services.
The state also significantly reduced Medicaid outlier payments for high-cost inpatient care.
The action follows a 3.5 percent Medicaid payment cut to hospitals in February.
“I am extremely disappointed in the administration’s decision to further reduce hospital reimbursement, which continues to weaken our hospitals’ ability to serve their communities,” said Louisiana Hospital Association president and CEO John Matessino. “These cuts are devastating.”