U.S. District Judge Christina Snyder ruled in favor of a request from the California Hospital Association to stop the state from cutting Medicaid reimbursements to hospitals, according to a Bloomberg report.
On Nov. 1, the CHA filed a complaint against California and the Department of Health and Human Services to block cuts under Medi-Cal, the state's Medicaid program. The state said the cuts would save roughly $623 million from the budget. The CHA argued that the reimbursement reductions would violate the federal Medicaid Act and would hurt hospitals' abilities to operate essential services, such as skilled nursing departments.
According to the report, Judge Snyder said "the state's fiscal crisis does not outweigh the serious irreparable injury the plaintiffs would suffer absent the issuance of an injunction," with the skilled nursing services used as an example.
California's Health Care Services Department "strongly disagrees with the ruling" and will appeal the decision, according to the report.
On Nov. 1, the CHA filed a complaint against California and the Department of Health and Human Services to block cuts under Medi-Cal, the state's Medicaid program. The state said the cuts would save roughly $623 million from the budget. The CHA argued that the reimbursement reductions would violate the federal Medicaid Act and would hurt hospitals' abilities to operate essential services, such as skilled nursing departments.
According to the report, Judge Snyder said "the state's fiscal crisis does not outweigh the serious irreparable injury the plaintiffs would suffer absent the issuance of an injunction," with the skilled nursing services used as an example.
California's Health Care Services Department "strongly disagrees with the ruling" and will appeal the decision, according to the report.
Related Articles on Medi-Cal:
Obama Administration Allows California to Cut More Than $600M From Medicaid Program
Medi-Cal Cuts Could Lead to Spikes in Charity Care, Bankruptcy for Several California Hospitals
California Medical Groups File Lawsuit Over Medi-Cal Cuts