A class-action lawsuit is seeking to expand a federal court challenge of Louisiana's Medicaid spending cuts to a wider group of applicable providers, including all acute-care hospitals.
The providers include intermediate-care facilities for the mentally retarded, mental rehabilitation providers and home-health agencies.
The lawsuit was filed March 20 by the same law firm that represents the two rural hospitals and 53 community homes for the mentally retarded that filed the original challenge.
In that case, U.S. District Judge Richard Haik in Lafayette, La., issued a temporary restraining order that blocked the Medicaid cuts, which were to take effect March 1.
Louisiana has ordered the cuts, including a 7% reduction in provider reimbursements, to balance the state's Medicaid budget.
In a member newsletter, Louisiana Hospital Association President Lynn Nicholas said the association does not believe it should join the suit because it might compromise the group's ability to negotiate a permanent increase in Medicaid funding.