Calif. Hospital Association sues over Medi-Cal provider cuts

The state recently received federal approval for a 10 percent cut in reimbursements for services from physicians, laboratories, pharmacies and nursing and long-term-care facilities.

Los Angeles Times: Hospital Group Sues Over Cuts To Medi-Cal Program
The trade group for California's hospitals has sued state and federal officials to block a 10 percent cut in government reimbursements for health care providers who treat low-income patients. The California Hospital Association said in its suit, filed in federal district court in Los Angeles, that cuts to the Medi-Cal insurance program will threaten the ability of many hospitals to continue operating skilled nursing facilities (Helfand, 11/2).

Modern Healthcare: Calif. Hospital Association Lawsuit Challenges Cuts To 2011 Medicaid Rates
With the Supreme Court already digesting arguments on whether cuts to Medicaid rates in 2008 jeopardized California's federally guaranteed access to care, state officials received permission to cut 2011 rates further -; and were swiftly met with another lawsuit. The California Hospital Association filed a lawsuit in U.S. District Court in Los Angeles late Tuesday seeking to block rate cuts in California's Medicaid program that were approved by the CMS last week. It was the final approval needed to implement 10 percent Medi-Cal rate cuts for non-acute care, including physician, laboratory and pharmacy services, along with nursing and long-term-care facilities (Carlson, 11/2). 

California Healthline: Which Providers Get 10% Reimbursement Cuts?
The state got what it requested from CMS when federal officials signed off on a number of cost-reduction measures, including a 10 percent cut in provider reimbursements. [Toby Douglas, director of Dept. of Health Care Services] outlined those cuts yesterday, as well as some exemptions to the 10 percent reduction including exemptions for home care, hospice and visits to clinics and physicians for children. ... Douglas said managed care rate cuts would be revealed by the end of this week (Gorn, 11/3).