Citing Medicaid ‘Budget Crisis,’ Kentucky Governor Issues ‘Moratorium’ on New Health-Related Projects

Citing a projected $280 million Medicaid deficit for FY 2002, Kentucky Gov. Paul Patton (D) on May 31 announced a "moratorium" on an "array" of new health projects and services, the AP/Owensboro Messenger-Inquirer reports. Under the moratorium, new health care projects, "such as construction and expansion of hospitals and nursing homes," would require a "certificate of need" from the state. The moratorium, intended to both trim Medicaid costs and limit "redundan[t]" services, rules out certification for "most" new project and service proposals, "even if they were to be paid for privately instead of being covered by Medicaid," the AP/Messenger-Inquirer reports. However, the moratorium does not apply to hospital acute-care beds, neonatal units, organ transplant programs or cardiac catheterization services, nor to projects that have already received a public hearing. Patton said that the moratorium, which will run through April 15, 2002, will "control spending and buy some time with which to draw up Medicaid recommendations for next year's General Assembly" (Wolfe, AP/Owensboro Messenger-Inquirer, 6/1).