Coast hospitals file second lawsuit against MS Division of Medicaid

Two coast hospital systems have filed a second lawsuit against the Mississippi Division of Medicaid (DOM) claiming the hospitals were shorted millions of dollars from Medicaid in state fiscal year 2014.

The lawsuit claims that DOM has a payment methodology that is contrary to state law. The lawsuit by Memorial Hospital at Gulfport and Singing River Health System seeks recovery of the underpayments and legal fees.

SRHS reports total underpayments of $21 million since the Division began underpaying for services provided to Medicaid beneficiaries and the uninsured. Memorial reported that underpayments have totaled $25 million.