To be blunt, you don't know jack. You are making this up. State legistlatures attempting to force Catholic/all hospitals to perform abortions and similar procedures has been going on for DECADES. Long before the embrionic stem cell issue was an issue. California has tried this multiple times and every single time they end up putting an exemption into the law because they knew it ultimately meant closed ERs.
One day, many years from now you will get the fully government controlled health care system you so desire. After all, as you and several others have stated, its the GOVERNMENT'S MONEY and therefore it comes with strings attached. Good, the government will get to provide the one-size fits all health system too. Good luck with that.
You have a reading comprehension problem. The “all” referred to the immediately preceding description of the contortions required of institutions conducting both privately or state funded embryonic stem cell research and other research which is federally funded.