State Health Care Agencies Predicted To Increase Outsourcing

OPEN MINDS, The Behavioral Health & Social Service Industry Analyst

Industry News

With rising Medicaid costs competing with budgetary requirements for homeland security initiatives, state spending on health care outsourcing is estimated to grow 17% between fiscal years 2003 and 2008, from approximately $500 million to $1.1 billion in 2008. State agencies are considering a number of different ways to deal with the projected 8.7% annual increase in Medicaid costs over the next five years, including outright Medicaid cuts, restricted program eligibility, and, more significantly, the comprehensive outsourcing of state . . .