Steve Love, CEO of the Dallas-Fort Worth Hospital Council, which represents 75 hospitals, noted that Perry's actions are a double whammy to hospitals, which as part of the PPACA negotiations agreed to cuts in their DSH or disproportionate share hospital payments in exchange for an expanded Medicaid program.
Hospitals now face having fewer resources to offset the costs of uncompensated care.
Love sees the Medicaid expansion with its federal backing as a way for Texas to get a sustainable Medicaid plan in place. "It gives us time to plan."
For now Michael Speer, MD, president of the Texas Medical Association, holds out hope that the Medicaid expansion will progress along the same lines as the federal CHIP (Children's health Insurance Plan) did when it was first introduced. "A lot of states said no at first but then they began to see the results. Within a few years every state was participating."