Beckley, W.Va.-based Appalachian Regional Healthcare has filed suit against the West Virginia Department of Health and Human Resources over allegedly inadequate Medicaid reimbursement rates, according to a press release by the health system.
The health system claims the Medicaid rates cover only two-thirds of the hospital's costs for providing medical care and threaten the continued operation of its Beckley ARH Hospital. According to the hospital, of the $1.7 million the state put in during 2009 to match federal funds, $1.4 million came from the hospital itself through the state's Medicaid provider tax. Twenty-two percent of the hospital's patients are covered by Medicaid.
ARH announced its intent to sue in November.
Read the ARH release on the Medicaid lawsuit.
Read more coverage on Medicaid lawsuits:
- Judge Dismisses Lawsuit by Massachusetts Hospitals Over Medicaid Payments
The health system claims the Medicaid rates cover only two-thirds of the hospital's costs for providing medical care and threaten the continued operation of its Beckley ARH Hospital. According to the hospital, of the $1.7 million the state put in during 2009 to match federal funds, $1.4 million came from the hospital itself through the state's Medicaid provider tax. Twenty-two percent of the hospital's patients are covered by Medicaid.
ARH announced its intent to sue in November.
Read the ARH release on the Medicaid lawsuit.
Read more coverage on Medicaid lawsuits:
- Judge Dismisses Lawsuit by Massachusetts Hospitals Over Medicaid Payments