On August 24, 2009, the U.S. Court of Appeals for the Ninth Circuit denied the state’s request for rehearing en banc of the April 6 order stopping rate reductions to hospitals for certain Medi-Cal services (see April 10 CHA News).
In January, CHA and other groups filed a lawsuit challenging reductions in Medi-Cal reimbursement for outpatient, distinct-part nursing facility, subacute and noncontracted inpatient services (see Feb. 6 CHA News). The court granted a preliminary injunction to halt the challenged rates for all parties to the lawsuit except hospitals.
CHA appealed to the Ninth Circuit, and also submitted an emergency request for relief pending a decision on the appeal. The Ninth Circuit’s April 6 order granted emergency relief by halting the challenged rate cuts to hospitals until the appeal is decided.
The California Department of Public Health immediately requested a rehearing en banc of the April 6 order, i.e., a hearing before the entire membership of the Ninth Circuit instead of a three judge panel. By denying the request, the Ninth Circuit cleared the way for the court to take up CHA’s appeal, which is fully briefed and ready to be heard.