A California state court has denied a request by hospitals and other providers to halt a 10% Medicaid rate cut. A Los Angeles Superior Court judge ruled against a preliminary injunction sought by the California Hospital Association, California Medical Association and other providers to halt the reimbursement cut, which went into effect July 1.
We are hopeful that should the courts be unable for technical procedural reasons to grant some relief to millions of Californians who rely on Medi-Cal for their healthcare needs, the governor and the Legislature will act to do so, Richard Frankenstein, president of the California Medical Association, said in a statement.
The court found that while the plaintiffs had shown that actual patient harm could come from the decision, federal law prohibits private parties from suing over rate cuts to Medi-Cal, as Medicaid in the state is known. California is facing a $17 billion budget shortfall this fiscal year and providers are protesting a total of $1.5 billion in cuts to healthcare services.
Providers are now considering filing an emergency appeal with 2nd District Court of Appeal in Los Angeles. The California Pharmacists Association also is seeking to stop the rate cut through a separate lawsuit. -- by Rebecca Vesely