CHARLESTON, W.Va. (AP) – The University of Virginia Health System is planning to stop accepting West Virginia Medicaid patients next month.

The health system says it can no longer afford to provide services at the rate West Virginia pays.

The Charleston Gazette reports that West Virginia hospitals were informed of the decision late last month. Hospitals in southern West Virginia frequently refer patients to U.Va.

The system says it will consider continuing to serve West Virginia Medicaid patients in dire situations.

The health system said it is losing about $3 million a year by serving West Virginia Medicaid patients.

Officials say the health system tried to negotiate an increase in reimbursement but West Virginia’s Medicaid program denied the request.

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Information from: The Charleston Gazette, www.wvgazette.com

Copyright 2010 The Associated Press.