Government
Alabama to boost Medicaid pay
NEWS IN BRIEF — Posted Dec. 19, 2005
Alabama will bid happy new year to physicians with an increase in Medicaid pay in January 2006. The federally approved increase will be the first raise in five years. The University of Alabama at Birmingham and the University of Southern Alabama will contribute money they've received from the state to the Medicaid program to fund the increase. For every 30 cents the state spends on Medicaid, the federal government pays 70 cents.
The teaching hospitals were experiencing difficulty attracting doctors and were motivated to find a solution. "We also saw a lot of unique specialty services not available, as I'm sure is the case in other settings," said David Hoidal, chief operating officer for the UAB health system. Pay raises will benefit physicians throughout the state, he said. Officials do not yet know how much rates will increase, and it will vary depending on the schools' contributions.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2005/12/19/gvbf1219.htm.
