Pa. Hospital Loses Medicaid Reimbursement Challenge

Law360, Philadelphia (January 8, 2014, 5:21 PM EST) -- The Pennsylvania Commonwealth Court on Wednesday shot down an appeal challenging the constitutionality of a new payment system instituted by the state's Department of Public Welfare to compensate health care providers for services rendered to recipients of medical assistance including Medicaid.

Armstrong County Memorial Hospital, located in the western part of the state, had claimed that its repayment rates were miscalculated and the new system violated the equal protection clause, but the three-judge panel upheld DPW’s decision to follow an administrative law judge’s recommendation.

Specifically, the...
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