A judge has ruled that Mecklenburg County in North Carolina has no obligation to pay at least $17.8 million per year to Charlotte, N.C.-based Carolinas HealthCare System to subsidize charity care, according to a Charlotte Observer report.
The hospital system filed suit against Mecklenburg last July, days after the county board agreed to terminate a $40 million healthcare services agreement with the system, effective June 2013. Carolinas' lawsuit accused the county of not giving proper notice of budget cuts, and asked the court to compel Mecklenburg to at least provide an annual payment to cover indigent care.
Superior Court Judge Robert Ervin said the county has no obligation to pay and CHS had no authority to sue for damages. The judge said the only remedy is for Carolinas to continue with the contract until June 2013 or terminate it. He gave Carolinas 30 days to select one of those two strategies. If it does decide to terminate the agreement, Mecklenburg will then have 14 days to decide if it will contest Carolinas' action.
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The hospital system filed suit against Mecklenburg last July, days after the county board agreed to terminate a $40 million healthcare services agreement with the system, effective June 2013. Carolinas' lawsuit accused the county of not giving proper notice of budget cuts, and asked the court to compel Mecklenburg to at least provide an annual payment to cover indigent care.
Superior Court Judge Robert Ervin said the county has no obligation to pay and CHS had no authority to sue for damages. The judge said the only remedy is for Carolinas to continue with the contract until June 2013 or terminate it. He gave Carolinas 30 days to select one of those two strategies. If it does decide to terminate the agreement, Mecklenburg will then have 14 days to decide if it will contest Carolinas' action.
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