ATTLEBORO -- Hospital administrators are keeping a wary eye on Congress as it plows through the Bush administration's proposed cuts in Medicare.

`` I think hospitals all over the country will be fighting this,'' said Linda Shyavitz, president and chief executive officer of Sturdy Memorial Hospital in Attleboro.

According to initial reports, Bush's new $2.7 trillion budget plan would mean a loss in Massachusetts of $758 million in Medicaid funds, and a reduction of $213 million in Medicare payments to health-care providers over five years.

The Medicaid impact is still vague, however, because the state is redesigning its program, the Massachusetts Hospital Association says.

The Medicare piece already has hospitals concerned. For complete story, see today's Sun Chronicle.