CHA News

Court Rules in Favor of Hospitals on CMS Rural Floor Policy

For CEOs, CFOs, legal counsel, government relations executives

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On April 8, a U.S. District Court issued a decision in Citrus HMA, LLC d/b/a Seven Rivers Regional Medical Center, et al. v. Becerra in favor of hospitals challenging the Centers for Medicare & Medicaid Services (CMS) policy that excludes wage data of urban-to-rural reclassified hospitals from the rural floor calculation.  

The ruling has favorable implications for similar litigation CHA is sponsoring on behalf of members. Specifically, CHA’s litigation challenges the application of CMS’ rural floor policy for federal fiscal year 2020, which cost California hospitals approximately $123 million. CHA has engaged Hooper, Lundy & Bookman, P.C. (HLB) to lead the legal challenge.  

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