2 Mississippi hospitals filed suit over 2014 Medicaid underpayments

Gulfport, Miss.-based Memorial Hospital and Singing River Health System in Pascagoula, Miss., have filed suit against the Division of Medicaid after the agency denied their appeal to recover underpayments from FY 2014, according to the Mississippi Business Journal.

The lawsuit, filed in Hinds County Chancery Court, seeks recovery for the 2014 underpayments and lawyers' fees.

The public hospitals have filed appeals to recoup alleged Medicaid underpayments for fiscal years 2014, 2015 and 2016. In June, the hospitals received noticed that their appeal for payments in 2014 was denied. An appeal for fiscal year 2015 underpayments remains outstanding.

The hospitals also have another lawsuit against DOM pending, that one related to underpayments in 2016.

SRHS estimates a total of nearly $21 million in Medicaid underpayments, while Memorial hospital officials said its underpayments total roughly $25 million.

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