Mass. Supreme Court Dismisses Safety-Net Suit Over Medicaid Reimbursement

Last week, the Massachusetts Supreme Judicial Court dismissed lawsuits filed by seven safety-net hospitals that claimed they were not reasonably reimbursed for Medicaid costs under the state's 2006 healthcare law, according to a Associated Press report in the Boston Globe.

In two separate suits, Boston Medical Center, a managed care organization and other disproportionate share hospitals alleged the state violated its obligation to reimburse them for the costs of care for MassHealth beneficiaries. At least 63 percent of the hospitals' gross patient service revenue comes from Medicare, Medicaid or other government payors.

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A lower court judge dismissed both of the suits, ruling that neither state nor federal law authorizes judicial review of reimbursement rates that are set by Massachusetts' Health and Human Services secretary. The state's Supreme Judicial Court upheld that dismissal Friday.

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