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In addition, proposed reductions in government reimbursement programs have affected the financial viability of many hospitals throughout the nation.
The federal government's capital contributions to hospital construction have been the impact of the federal health care financing programs such as Medicare and Medicaid. Prior to the implementation of Medicare and Medicaid in 1965, the federal government financed about 15 percent of hospital spending. Today, with federal financing of care for the elderly and disabled, total government spending accounts for more than 50 percent of community hospitals' net revenues, with Medicare alone accounting for 36 percent of such revenues...
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