Hospital Group Sues State to Block Medi-Cal Provider Reimbursement Cuts

SACRAMENTO, Calif.—Following on the federal government’s approval of Medicaid payment cuts to certain California providers, a hospital group Nov. 1 filed a lawsuit in federal district court, seeking to halt pay cuts that would affect nursing facilities within hospitals (California Hospital Association v. Douglas).

The California Hospital Association filed in the U.S. District Court for the Central District of California a complaint for injunctive and declaratory relief to block the recently approved 10 percent cut in the state’s Medicaid reimbursement rates. CHA said the reduced payment will force hospitals to stop providing skilled nursing beds.

In a statement, ...