Stupid. The only people this move will hurt is patients:
Physician participation in California’s Medicaid program, Medi-Cal, is already low. The most recent estimate, from a 2001 California HealthCare Foundation survey, found that 55% of primary care doctors and 50% of specialists accept Medicaid patients. The new Medicaid cuts mean these numbers will decline further.
Doctors will do fine despite cuts in payment. It’s the patients who will suffer.
 
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The clinics that end up actually seeing the Medicaid patients almost invariably get enhanced payment one way or another. Either the “critical access” or other rural pay enhancements, or grants from various other government programs. That’s why I usually don’t bother. Pay me what you really pay them, and fine, I’ll see Medicaid. But you pay the neighbor twice what you pay me? Fine, let them see Medicaid.