(LEX 18) — Healthcare in Kentucky is facing a tough future with billions in Medicaid cuts on the horizon, according to the Kentucky Hospital Association. The organization warns that without state and federal intervention, healthcare facilities across the state will be forced to reduce services, lay off medical staff, and in some cases, shut down completely.
"That's not fearmongering. It's simply a fact," Nancy Galvagni, Kentucky Hospital Association president, told state lawmakers on Wednesday.
The KHA, representing about 130 hospitals across Kentucky, reiterated estimates that 35 hospitals—mostly in rural areas—could close their doors because of the cuts. These facilities are heavily dependent on Medicaid to cover the cost of care, according to the group.
Hospitals are already beginning to review which critical medical services they may need to eliminate entirely, according to Galvagni.
"Most services that hospitals offer - the payment is not adequate to cover the cost. There is a lot of subsidization of services and we all know what those services are - OB, behavioral health, emergency care. So, they're going to look at that and they're going to have to make some hard decisions about what they are going to have to discontinue and what they can continue," Galvagni said.
Another major concern is the loss of hospital staff, with the KHA noting that wages represent about 60% of a hospital's costs.
"We ran some estimates across the state and estimated it could be up to 20,000 jobs lost," Galvagni said.
