Bloomberg Businessweek, November 3, 2011

Hospitals in California sued the state and the U.S. Department of Health and Human Services to block cuts to government reimbursements for health-care providers that serve low-income people. The cuts of more than 20%, including for skilled nursing services, resurrect previous reductions that the courts have found to be in violation of the federal Medicaid Act, the California Hospital Association said in a complaint filed yesterday in Los Angeles. The lobby group, which represents dozens of hospitals in the state including St. Jude Medical Center and Shriners Hospitals, seeks a court order that the new cuts are unlawful.

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