Hospitals file lawsuit over federal subsidies
Eight Maine hospitals have filed a lawsuit against U.S. Department of Health and Human Services Secretary Kathleen Sebelius, seeking federal reimbursement for care provided to elderly, poor and disabled patients, according to the Bangor Daily News.
The lawsuit is the latest in a long dispute over federal payments the hospitals say they should have received for treating Medicaid patients.
In the lawsuit, the hospitals contest a decision by Sebelius that overturned a review by an independent Medicare review board in calling for the federal government to recoup a portion of those extra payments. William Stiles, the attorney with Verrill Dana representing the hospitals, told the paper the eight hospitals repaid tens of millions of dollars in connection with that decision.
In March, that independent Medicare review board found the hospitals should get around 80% to 90% of the extra payments back. In its ruling, the board said the hospitals were not properly notified that payments they already received would be reduced.
The hospitals are now asking a federal judge to review the Sebelius’ decision and rule that they should have been able to keep the money.
The hospitals participating in the lawsuit are Maine Medical Center in Portland, Central Maine Medical Center in Lewiston, Mid Coast Hospital in Brunswick, Eastern Maine Medical Center in Bangor, Mercy Hospital in Portland, Northern Maine Medical Center in Fort Kent, Southern Maine Medical Center in Biddeford and MaineGeneral Medical Center in Augusta.
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