HHS Acted Arbitrarily In OK'ing Medicaid Rate Cut: 3rd Circ.

Law360, New York (September 19, 2013, 4:40 PM EDT) -- The Third Circuit on Thursday partially revived a lawsuit brought by a group of nursing homes challenging the U.S. Department of Health and Human Services’ approval of a per diem reimbursement rate reduction by Pennsylvania's Medicaid administrator, saying the department didn't adequately vet the effect of the rate change on quality of care.

A three-judge panel ruled in a precedential decision that the HHS acted arbitrarily in approving a state plan amendment that included a 9 percent per diem rate reduction in the annual amount that...
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