Some Florida hospitals will see a seven percent reduction in Medicaid reimbursement under a budget adopted by the Florida Legislature, saving the state an estimated $250 million in the 2011 fiscal year.

Two children’s hospitals – Miami Children’s and All Children’s – along with rural hospitals are exempt from the cuts.

Legislators included a provision that if federal stimulus payments are extended, the reduction would be scaled back to five percent.

Overall, social services saw the biggest reductions in funding with steeps cuts in mental health and substance abuse programs. Opponents say the result will be more pressure on hospital emergency rooms. Funding for prenatal care was also cut.

A proposal to extend Medicaid managed care to the entire state died, victim of final negotiations over the budget in the legislative session which ended April 30.

House and Senate negotiators could not resolve differences in Medicaid managed care bills passed by each chamber, and Governor Charlie Crist (R) had signaled that provisions in the House-passed version could prompt a veto.

Observers are speculating whether Gov. Crist will veto the budget due to the cuts in social services spending, as well as use transportation infrastructure money to shore up general spending. A bill requiring women to pay for an ultrasound prior to an abortion also faces a veto.