OBJECTIVES: We sought to assess how physicians’ perceptions of Medicaid payments influenced their willingness to accept new Medicaid patients.  METHODS: The physician component of 2004-2005 Community Tracking Survey, which included a total of 6628 physician respondents was analyzed. Multivariate regression analysis was performed to assess physicians’ willingness to accept new Medicaid patients on the three sets of covariates: a) physician characteristics, b) perception of Medicaid payments; and c) information technology used in practice. RESULTS: Hospital-based physicians and physicians of non-white races are more likely to accept new Medicaid patients (adjusted odds ratio (OR) 1.25, p=0.038 and OR 1.72, p=0.005, respectively), compared to solo practice and white physicians, respectively.  In addition, surgeons and specialists were more likely to accept new Medicaid patients compared to primary care physicians (adjusted OR 5.31, p<0.0001; and adjusted OR 3.87, p<0.0001, respectively).   Physicians’ acceptance of new Medicaid patients was positively associated with the amount of hours spent with patients per week (adjusted OR 1.01, p=0.001) and the hours of charity care provided (adjusted OR 1.01, p=0.018). The acceptance of new Medicaid patients was negatively associated with the perceptions of Medicaid payment issues, including billing and paperwork requirement and filing of Medicaid claims (adjusted OR 0.60, p<0.0001), inadequate Medicaid reimbursement (adjusted OR 0.77, p=0.014) and delayed Medicaid reimbursement (adjusted OR 0.72, p=0.002).   The perception of lack of specialists in the service area was positively associated with the physicians’ willingness to accept new Medicaid patients (adjusted OR 1.35, p=0.033). The availability of information technology, such as electronic prescribing, was not associated with physicians’ willingness to accept new Medicaid patients. CONCLUSIONS: The factors which significantly influenced physicians’ willingness to accept new Medicaid patients included several dimensions in Medicaid payments.  Regulators and policymakers need to be aware of the possible unintended consequences of cost containment policy actions which may negatively impact access to care by Medicaid patients.