why do state governments pay hospitals?

Question

I read this article in the NYTimes, and I don’t understand why hospitals are paid by states in the first place. Doesn’t Medicare pay individuals directly who then pay the hospital? Why the government middleman?

https://www.nytimes.com/2019/10/03/nyregion/medicaid-donation-hospitals-cuomo.html?smid=nytcore-ios-share

In: Other

Answer 1

Reimbursement to hospitals from Medicaid comes directly from the government to the hospitals.