Transmenu powered by JoomlArt.com - Mambo Joomla Professional Templates Club

The hospitals claimed they were owed the Medicare back payments as a result of a narrow interpretation of reimbursement rules by the Reagan administration. The interpretation precluded Medicare reimbursement for treatment of some low-income patients.

The lawsuit began in late 2002, when Baystate Medical Center in Springfield, Mass., sued CMS and the Department of Health and Human Services for back payments related to treatment of patients in the early 1990s. Baystate was joined in suing by more than 660 hospitals, mostly nonprofits.

"We operate our finances strictly by the rules,? explains Chuck McLean-Shinaman, senior vice president and treasurer, Baystate Health, in a prepared statement. "In this situation, we uncovered incorrect payments which adversely affected Baystate Medical Center. We led the way nationally to correct these underpayments.

"Our financial stewardship and commitment helps support our efforts to fulfill our charitable mission and better serve our communities."

Hospitals joining Baystate in the case included University of Chicago Hospitals, Duke University Health System, Stanford Health Services and San Francisco General Hospital.