Medicare agreed to settle a dispute with about 2,200 hospitals nationwide over a decade-long error in reimbursement rates, offering what could amount to a $3-billion infusion to hospitals already bracing for funding cuts under the federal healthcare law.
More than 200 California hospitals are included in three similar agreements reached April 5, and they stand to share a total of more than $310 million. For instance, Cedars-Sinai Medical Center said it would receive $14.3 million and Long Beach Memorial Medical Center said it was due about $6 million.
Hospital representatives welcomed the agreement, but they say it does little to resolve larger complaints that Medicare pays too little for patient care.
The federal Centers of Medicare and Medicaid Services said it agreed to settle lawsuits related to this matter “to resolve potential liability associated with an alleged error in calculating inpatient hospital rates.” A spokeswoman for the agency declined to comment on what the overall settlement would cost or what individual hospitals might receive.