New Jersey hospital can't get $1.8M subsidy after error in cost report, court rules

Inspira Health will lose out on a $1.8 million subsidy for one of its hospitals after an appellate court ruled that the New Jersey health department properly declined to consider revisions to a cost report, according to the Courier Post

Inspira Health hoped to correct a filing submitted to the New Jersey Department of Health that it used to calculate its graduate medical education subsidy at Inspira Medical Center Vineland (N.J.). 

Inspira said it was denied the subsidy after it inadvertently understated its Medicaid revenue by $23 million in the report. The health system notified the department of its error and filed a revised cost report. Inspira argued that it would have qualified if the agency accepted the revised version — but the agency said it couldn't waive the deadline, as it was fixed by the state legislature. 

A three-judge appellate panel agreed with the health department June 10.

"The Department needs timely cost reports to properly calculate healthcare subsidies," the ruling said, according to the Courier Post. 

"We thank the court for their review of our request," Inspira spokesperson Paul Simon told the Courier Post. "We were not surprised by the ruling."

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