Illinois hospitals

Medicaid Changes May Mean Cuts For Some Illinois Hospitals

Feb 12, 2018
"Blake Wilbur Building - Stanford Hospital & Clinics" by Flickr User Jennifer Morrow / (CC X 2.0)

Illinois lawmakers and the state's hospitals have reached a tentative agreement on a new method of spreading billions of dollars in federal Medicaid money to hospitals across the state.

But some of Illinois' 22 so-called "safety net" hospitals that serve a high volume of Medicaid patients could lose money under the new program. That's prompting concerns hospitals may have to cut services, lay off staff or even close.

Illinois distributes $3.6 billion through an assessment on hospitals matched by federal money to cover Medicaid costs.

Illinois hospitals are bracing for Medicaid reimbursement rate cuts at the state level. This issue entered the spotlight after a Rockford-area health-care provider announced budget cuts. NIU's Jim Ciesla says other hospitals could take similar steps amid uncertainty over state and federal policy matters. 

Rockford-based Swedish American Health System has announced layoffs and job position eliminations to stay in the black,  citing potential reductions to reimbursement rates under the state's Medicaid program.