Coast hospitals sue state Medicaid for $20 million in under-funded reimbursements.


  

Two large Coast hospital systems are ready to go to court to fight for what they claim are $20 million in under-funded Medicaid reimbursements.

Memorial Hospital at Gulfport says it was shorted more than $10 million by the Mississippi Division of Medicaid during the past fiscal year. Singing River Health System also claims it’s owed more than $6 million in reimbursements.

On Wednesday, the hospitals filed a joint lawsuit against the agency, seeking to recover what they call “underpaid Medicaid funds”.

“This money is available in the state of Mississippi. It is not a state budget issue. It’s in the general fund for the Division of Medicaid, a sufficient amount to get these two Coast hospitals their cost back. That hasn’t happened and we’re asking the court to find out why,” said Memorial Hospital President/CEO Gary Marchand.

Both hospital executives say a new state law enacted in March 2015 sets new criteria to make sure Medicaid patients and the uninsured have access to medical care. However, they also say the funding formula is flawed.

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