9th Circ. Blocks Health Clinics From Recouping Medicaid Cash

Law360, New York (April 4, 2013, 8:54 PM EDT) -- Citing constitutional provisions on state immunity, the Ninth Circuit on Thursday blocked two health clinic networks from recouping money they say California Medicaid wrongly demanded, but said the companies could try to avoid collection of further funds.

The networks, North East Medical Services Inc. and La Clinica de La Raza Inc., had failed to show that they deserved an exception from the 11th Amendment’s general prohibition on private lawsuits seeking monetary damages against states in federal court, the Ninth Circuit said.

The networks had been contesting reimbursement...
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