Tim Egan

House panel OKs Medicaid plan, but 2 hospitals would close

Illinois hospitals would get $360 million more in federal Medicaid funding, but two facilities serving impoverished communities would close, under a plan a House committee approved Tuesday.

The Appropriations-Human Services Committee voted 14-0 on a revised, $3.5 billion program to fund hospitals statewide.

Lawmakers and the Illinois Health and Hospital Association, which represents over 200 hospitals in the state, have been working for months to update the program in compliance with federal requirements that more Medicaid clients be covered by cost-cutting managed-care systems.

Some hospitals have complained that privately run managed-care programs often deny or...