But there are few places to send them, mostly, the officials say, because Medicaid cuts have sharply reduced financing of Oregon's medical system and curtailed options for patients outside the hospital.

But Medicaid cuts have long proved unpopular with state legislators - and not just with Democrats.

Pamela Brier, director of Bellevue Hospital Center, said that if Medicaid cuts proposed by the state went through, she would almost certainly have to dismiss employees.

Many of New York's medical centers are aging and financially strapped, reeling from Medicaid cuts and the cost containment of quickly expanding managed care.

Planned Cuts in Aid About $22 million in Medicaid cuts were recently announced for Arkansas.

For the health care industry, the combined impact of increased fees and $500 million in Medicaid cuts would have a devastating economic impact, industry representatives said.

But critics have pointed up the conflict between Medicaid cuts and privatizing: if poor people are no longer covered by Medicaid, who would want to buy a hospital that treats them?

Mr. Pataki proposed Medicaid cuts and cost reductions of nearly $1.3 billion, with $246 million coming from the federal government's plan to have Medicare pick up prescription drug costs.

But economics and Medicaid cuts are forcing a wrenching change in that mission and causing consternation in the community and among other hospitals.

One disabled man offered a passionate discourse about how he felt threatened by Medicaid cuts proposed by Mr. Giuliani and Gov. George E. Pataki.