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Because Medicare is such a big part of the federal budget, it will almost certainly be part of any deal to reduce government spending, Kahn said. And because hospitals account for 35 percent to 40 percent of Medicare spending, they are sure to feel some of those cuts.
“You always have to be concerned where there’s this nexus between fiscal policy and health policy. Fiscal policy is going to drive health policy, and not necessarily what the best health policy is,” Kahn said.