Hospitals Sue Govt. To Stop New Medicaid Rule

Law360, New York (March 12, 2008, 12:00 AM EDT) -- Groups representing American hospitals have sued the government to prevent a proposed $5 billion cut in federal funding for Medicaid, saying the measure would gut health care for low-income Americans.

The National Association of Public Hospitals and Health Systems, American Hospital Association, Association of American Medical Colleges and the National Association of Children’s Hospitals filed the suit in the U.S. District Court for the District of Columbia on Tuesday.

The Centers for Medicare & Medicaid Services issued the rule in May 25, 2007, but Congress issued...
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