Hospitals File Suit Contesting Medi-Cal Reimbursement Provision in 2004-2005 State Budget
Attorneys for more than 30 hospital systems in California have filed a lawsuit in federal court alleging that state officials illegally adjusted Medi-Cal reimbursement rates in the fiscal year 2004-2005 state budget, the San Diego Union-Tribune reports. The 2004-2005 state budget includes a "retroactive funding freeze," which allows Medi-Cal to reimburse certain hospitals at 2003 rates, according to the Union-Tribune.
In the suit, plaintiffs' attorneys allege that the state did not properly propose the rate changes. In addition, the plaintiffs maintain that such a freeze places a "serious financial burden" on some hospitals, Union-Tribune reports.
Attorneys said they intend to amend the lawsuit to include 40 additional hospitals as plaintiffs.
A Department of Health Services spokesperson declined to comment on the suit, according to the Union-Tribune (San Diego Union-Tribune, 3/3).