Tentative Stop Predicted for Medi-Cal Cuts to Doctors, Dentists, and Other Providers

 

SACRAMENTO, CA (CDCAN)  [Last updated 01/30/2012 07:00 PM] - In another major legal setback for the Brown Administration, a US District Court Judge in Los Angeles issued a tentative order today that indicates the court - barring a surprise -  is all but certain to issue a final order tomorrow that will stop the State from implementing Medi-Cal rate reductions of up to 10% for by physicians, clinics, dentists, pharmacists, ambulance providers and providers of medical supplies and durable medical equipment on or after June 1, 2011 . [A copy of the 25 page tentative decision by the Judge is attached to this CDCAN Report titled "20120130 - CA Medical Association v Toby Douglas - Preliminary Injunction (Tentative).pdf"  The document was saved as an image pdf file which means that persons who are blind or sight impaired will not be able to read it using a screen reading device.  CDCAN reproduced the Judge's tentative conclusion below. ]

 

A court hearing on the case was scheduled for January 31 in Los Angeles, and it is not certain at this point if the hearing will actually be held given the Judge's tentative ruling.  CDCAN will issue a full report on her final ruling tomorrow.       

 

 Judge Christina Snyder issued her tentative order in a lawsuit filed by the California Medical Association and other provider associations against Toby Douglas, director of the Department of Health Care Services - the state agency that oversees California's Medicaid program (called "Medi-Cal").  A "tentative order" or ruling is the proposed ruling of the court sometimes issued before an actual hearing.  Parties from either side of the lawsuit can still request that an actual court hearing be held - but the issuance of a tentative ruling is a very strong indication of how the judge intends to rule.   

 

Judge Snyder earlier in December and early January previously issued orders that blocked Medi-Cal reductions on or after June 1, 2011 for pharmacies, certain (distinct part) nursing facilities and non-emergency medical transportation providers.   

 

Like in those orders, the federal court found that while recognizing the State's budget problems,  "the balance of equities and the public interest strongly favor the issuance of an injunction" citing a higher federal court opinion that "the injury to a state caused by an injunction of one of its statutes does not outweigh the public's interest in ensuring that state agencies comply with the law and protect beneficiaries' access to services".  

 

The additional Medi-Cal rate reductions of up to 10% were imposed on a wide range of Medi-Cal providers as part of the 2011-2012 State Budget passed in March 2011 - with the main budget bill and other budget related bills passed later in June...more