U.S. Delays Hospital Payments as Medicaid Scrutiny Intensifies

May 2, 2025

Empty hosptial hallway with dimmed lights

(Wall Street Journal) – Unexpected delays in billions of dollars of supplemental Medicaid payments have forced some hospitals across the country to cut costs including laying off staff and pausing payments to medical suppliers.

Hospital associations in at least 10 states said the Centers for Medicare and Medicaid Services, the federal agency responsible for approving funds known as state-directed payments, has been unusually slow at processing applications for them. Some of the delays date to the fall of 2024. (Read More)