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BOZEMAN, Mont. (AP) — Officials with Bozeman Health say they expect to see a $2.6 million drop in revenue this year due to state cuts in Medicaid reimbursement rates.

Bozeman Health President John Hill tells the Bozeman Daily Chronicle the hospital does not plan any layoffs or reduction in services and will try to make up the difference by saving money on supplies, including medications and equipment.

Hill says the estimated loss is based on the number of Medicaid patients who received treatment at the hospital or its clinics in 2017.

The cuts come as the state dealt with a projected $227 million budget shortfall.

Kalispell Regional Medical Center recently announced some layoffs, saying it expected to see a $6.6 million drop in revenue due to the state budget cuts.

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Information from: Bozeman Daily Chronicle, http://www.bozemandailychronicle.com