Group mulls legal challenge

The Sun Herald, 7/15/8

The Mississippi Hospital Association says it may ask the courts to block Gov. Haley Barbour’s plan to cut $375 million from the Medicaid program because the deep cuts could force some hospitals to close.

Under Barbour’s plan, which takes effect Aug. 6, Medicaid-reimbursement rates for hospitals would be reduced by 33.5 percent. Michael Bailey, MHA’s chief financial officer, said the reduction could lead to thousands of hospital layoffs and cuts to patient services.

“It’s a multimillion-dollar cut in rates to our hospital providers. Some hospitals would not be able to absorb that,” Bailey said Monday. “We would not discount any and all administrative and legal challenges to stop the Division of Medicaid from making those type of cuts.”