Business Journal: Bid To Stop Health Care Cut Stalls

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(Sacramento, CA)
Thursday, July 31, 2008
Medical service providers seeking a last-minute reprieve to protect revenue lost their latest legal round. A Los Angeles Superior Court judge on Wednesday denied a motion by a group representing medical service providers to block the Legislature from a 10 percent cut of Medi-Cal reimbursement payments. The California Medical Association, California Hospital Association and other medical-related trade groups asked for a preliminary injunction to block the 10 percent cut by the state Department of Health Care Services. The judge said the executive branch of the federal government and the state Legislature should determine reimbursement payments for medical services of low-income residents. The $15 billion state budget deficit forced the 10 percent cut.