Sacramento County has agreed to pay Sacramento, Calif.-based UC Davis Health $98 million plus interest over a 15-year period as reimbursement for services the health system provided to jail inmates and indigent residents of the county between July 2008 and December 2015, according to The Sacramento Bee.
Sacramento County had a long-standing contractual relationship with UC Davis for care provided to patients eligible for the Sacramento County Medically Indigent Services Program. However, the county terminated the contract with UC Davis on June 30, 2008, and began using a third-party administrator to access UC Davis' services at negotiated rates. The health system claimed the county shortchanged it after the payment model changed, according to the report.
UC Davis sued Sacramento County in 2009, alleging the county had failed to pay more than $100 million in claims for medical care. At that time, UC Davis said it was providing care to thousands of county residents without compensation.
Regarding the settlement of the litigation, UC Davis Chancellor Gary S. May said, "We thank the county of Sacramento for working with us to reach an agreement and remain committed to working collaboratively with the county to care for patients in this region."
More articles on healthcare finance:
Shuttered Tennessee hospital needs patients to pay up to cover $40k in past-due wages
CMS offers payment boost to certain hospitals hit by two-midnight rule
CHS in negotiations to extend nearly $2B in debt