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SALT LAKE CITY (AP) -- Utah's review of health care spending at hospitals with large numbers of Medicaid and uninsured patients has some rural providers fearing the loss of millions in federal funds.
"That money is critically important to keeping these hospitals open and operating," said Janet Jenson, a Salt Lake City attorney who represents hospitals in six counties. "They absolutely need it."
Jenson represents hospitals in Beaver, Garfield, Grand, Kane, San Juan and Sanpete counties. She said administrators fear losing hundreds of millions of dollars annually.
A telephone conference meeting to discuss the issue is scheduled for Monday, she said.
Utah has about $23 million in federal funds, according to State Medicaid Director Michael Hales. The state isn't trying to redistribute that money, but is renegotiating contracts to make sure hospitals are following the rules tied to the funds, Hales said.
Lyman Duncan, interim administrator and chief financial officer for the San Juan Hospital in Monticello, said he'll plead for money. Duncan estimates the hospital could lose $700,000 in so-called "disproportionate share" funds.
"There's no question it would be one of the most significant challenges we could face as far as the ability to pay our bills and keep our doors open," he said.
About 80 percent of San Juan Hospital patients are on Medicaid or Medicare and reimbursements don't always cover the cost of care, Duncan said.
"Some patients travel 120, 130 miles just to be admitted to a hospital. If we don't keep our doors open, there would be no emergency room care in San Juan County," he added.
Other hospitals potentially facing closure if funds are lost include Kane County Hospital in Kanab, Milford Valley Hospital in Beaver County, and Beaver Valley Hospital, Jenson said.
Information from: The Salt Lake Tribune
(Copyright 2008 by The Associated Press. All Rights Reserved.)
