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Hospitals Sue To Block Medi-Cal Cuts

Aired 11/22/11 on KPBS News.

The trade group representing California hospitals is suing the state to block a 10-percent rate cut to Medi-Cal providers.

— The California Hospital Association is asking a federal judge to block a recently approved 10-percent cut to Medi-Cal providers. Hospitals say the cut will hurt their bottom line, and will reduce access to care.

Last month, the federal government approved California's request for the 10-percent reduction in Medi-Cal payments. State officials said the cut will help save money, and won't limit access to care.

Chris Van Gorder is CEO of Scripps Health. He said state officials are dead wrong.

"They are trying to balance the budget on the backs of health care providers and patients," Van Gorden argued. "And I think we have an obligation and a responsibility to protect our patients by challenging the state in their action."

The associations representing California doctors, dentists, and pharmacists are also suing to stop the Medi-Cal cuts. They claim the cuts did not go through the proper legal procedures before they were approved.

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