government
Lawsuit against Medicaid hospital cuts declared valid
NEWS IN BRIEF — Posted Oct. 15, 2012
A legal challenge against the New Hampshire Dept. of Health and Human Services over Medicaid payment cuts to hospitals can move forward, a federal judge has ruled.
The U.S. District Court for the District of New Hampshire on Sept. 27 refused the state’s request to dismiss the lawsuit. Nicholas Toumpas, health department commissioner, had argued that the suit lacked legal standing and should be thrown out.
The complaint involves a 33% pay reduction for outpatient services and a 10% cut for inpatient care for noncritical care hospitals, enacted by the state in 2008. Ten hospitals in 2011 sued New Hampshire over the cuts, alleging that the state had failed to provide them with notice and an opportunity to comment on the reduced rates. The state ignored how the cuts would impact access for needy patients, the hospitals said.
In his opinion, Judge Steven J. McAuliffe said the plaintiffs have made a “substantial showing that hardship is being suffered by both providers and Medicaid-eligible patients due to the reduced rates, and that continuing enforcement of those rates, if unlawful, will at some point result in irreparable injury.”
The next hearing in the case is scheduled for Nov. 1.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2012/10/15/gvbf1015.htm.
