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Texas is the same way - but the birthmother actually signs before they are released sometimes (okay not sure on this I think it iis 72 hours or 48 hour after birth?)
We didn't have any issue what so ever on our medicaid. What happens if she parents?!? There is no WAY IN HECK that you should pay the hospital bills if she is going to parent. That is ridiculous. They usually don't bill it until later anyways and by that time (past 10 days) she will know wether she is going to sign or parent. I'm sorry that is just wrong if your attorney wants you to pay either way.
I would NOT allow that. Especially if it takes 10 days for her to sign - then legally that child is her for 10 days post birth. I would at least tell her to go try to get medicaid, if they make a deal out of it then she can tell them that until she signs relinquishment papers she can change her mind & she has not made a decision, she still has as much right to her child & assistance as the next person.