Another Illinois Medicaid shakeup threatens hospitals

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For years nearly every Illinois hospital has paid into a pot of money that helps the state bring in more federal dollars. But the program, effectively a tax on hospitals, is dated and doesn’t reflect how much the health care industry has changed.

Now, state lawmakers, the Rauner administration and lobbyists want to modernize the hospital assessment program, shaking up how it doles out money to medical centers across the state. Currently, it redistributes funds based on Medicaid services provided in the hospital in 2005 and on an outpatient basis in 2009.