Leventhal Comments on Impact of Federal Appeals Court Ruling Against Medi-Cal Cuts to Hospitals

Partner Robert Leventhal was quoted in a Los Angeles Times article, “U.S. Appeals Court Says Medi-Cal Cut to Hospitals Was Illegal,” covering a U.S. 9th Court of Appeals ruling saying the federal government wrongly approved California’s request to temporarily cut Medi-Cal reimbursements by 10 percent for outpatient hospital care during the recession.

If the ruling stands, the state and federal government will have to reimburse California hospitals hundreds of millions of dollars, said Leventhal, who represented 57 California hospitals in a challenge to the government’s decision.

The ruling will have “a major impact” on Medi-Cal rates, which “are the lowest or next to the lowest in all 50 states for hospital outpatient services,” Leventhal said.

He also said the ruling could be used in future challenges involving Medi-Cal.

“It’s clear that the rates aren’t structured to provide the same access to care” as the general public, he said.