What is the Recovery Act's dedicated Medicaid funding ultimately stimulating?

State Medicaid programs are the intended recipients of almost 60 percent of the approximately $150 billion that has been allocated to the healthcare industry through the stimulus package. During a "recession adjustment period," all states will receive a 6.2 percent base increase in their Federal Medical Assistance Percentage, which is a formula for determining how much money for Medicaid a state receives through a federal matching program. Hospitals would do well to monitor how their states actually intend to use these funds, as there may be implications for providers and patients if funds are diverted for nonhealthcare spending.