The state recently decided to cut Medicaid payments to BMC from $12,476 per admission to $9,323. The new reimbursement rate was calculated by taking the average cost of care and cutting 25 percent in order to encourage efficiency, according to the report.
BMC claims that this type of reimbursement calculation is illegal because state law requires that each hospital’s reimbursement rate is determined by its individual needs.
BMC and its affiliate health centers and health plan received $1.5 billion from the state last year; however the hospital projects a $175 loss in its upcoming fiscal year due, in part, to the state cuts.
Read the Boston Globe’s report on the Boston Medical Center suit.
