Iasis Sues Utah Medicaid, Argues State Has No Authority to Recoup Overpayments

Hospital operator Iasis has filed suit against Utah Medicaid’s Office of Inspector General arguing the office has no authority to recoup the state’s overpayment for emergency department services provided by its hospitals in the state, according to a Salt Lake Tribune report.

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In October, the state demanded that three of Iasis’ Utah hospitals — Davis Hospital & Medical Center in Layton, Salt Lake Regional Medical Center and Jordan Valley Medical Center in West Jordan — refund overpayments for emergency services provided in 2008 and 2009, according to the report.

Iasis argues the OIG only has the authority to hold payments, not demand recoupment, according to the report. Iasis says it offered to repay the state for incorrect payments it discovered on its own in 2009, but the state refused, according to the report.

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