In the News: Judge’s Decision on Hospital Suit Blocks Medicaid Cuts

Hospitals will get a temporary reprieve from a change in Medicaid regulations that would cut hospital payments by an estimated $5 billion over the next five years, according to published reports.

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Hospital groups had filed a federal lawsuit in March in an attempt to void the regulations; on Friday, a district court judge’s ruling set them aside. It is now up to the Bush administration to decide whether to republish the Medicaid rule, which CMS says will not happen before Aug. 1. For more on the suit, go here.

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