Kent

Santa Rosa Mem'l Hosp., Inc. v. Kent

Good Law
236 Cal. Rptr. 3d 199·25 Cal. App. 5th 811
Court of Appeal of CaliforniaJuly 31, 2018A151588California5,006 words

Opinion

lead Opinion

Pollak, J.

*201 *814 The California Legislature reduced Medicaid hospital payments 10 percent between 2008 and 2011 and the federal agency administering the Medicaid program approved the rate reductions. A group of hospitals allege the rate reductions violate sections 13(A) and 30(A) of the Medicaid Act ( 42 U.S.C. § 1396 et seq. (Medicaid Act) ), which set out, respectively, procedural and substantive requirements the state must follow when establishing reimbursement rates. ( 42 U.S.C. § 1396a(a).) Plaintiffs appeal from the denial of their petitions for a writ of mandate seeking to declare the rates void and to obtain an award of almost $100 million in recalculated rates.

We shall affirm the trial court's denial of a writ but, as to plaintiffs' principal contention, on a ground rejected by the trial court. We conclude that health care providers alleging a violation of 42 United States Code section 1396a(a)(30)(A) (section 30(A) ) may not obtain a writ of mandate against state officials to contest Medicaid rates approved by the federal agency that administers the program. Their recourse is an administrative action against the federal agency that approved the rates. While plaintiffs may…

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