Ohio's Catholic bishops are warning that the proposed two-year state budget threatens the safety net provided by Catholic hospitals. Daniel Pilarczyk, Archbishop of Cincinnati, outlined the bishops' concerns in a recent letter to Ohio Gov. Ted Strickland. Among their main concerns is a plan to raise the franchise fee hospitals pay to the state. The higher fees would allow the state to attract a larger share of federal Medicaid money but return just a fraction of it to health systems and use the remainder to balance the state budget, Pilarczyk said.