Children’s Hospitals Fear Missing Millions Absent High Court Aid

The fate of some children’s hospitals is on the line in a U.S. Supreme Court challenge to the formula used by federal regulators to compensate hospitals serving primarily poorer patients.

The Children’s Hospital Association of Texas asked the high court to review a decision upholding a federal rule that would reduce payments to hospitals for uncompensated care by the amount they receive from Medicare and private insurance.

The 2017 rule violates the Medicaid statute and will cost hospitals millions of dollars per year, leading to a reduction in health-care services to low-income patients, the hospital group says.

“This rule is ...