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California Medicaid Agency Beats HITECH Act Incentive Pay Suit

April 8, 2021, 2:31 PM

California health-care providers lost their bid to stave off the state Medicaid agency’s attempt to recover disputed overpayments of money encouraging them to adopt electronic healthcare records because the state actors had no say in how the payments were determined, a federal court said.

The federal HITECH Act created a “complete methodology” for calculating hospitals’ EHR incentive payments and doesn’t allow for any interpretation or rulemaking by the states, the U.S. District Court for the Northern District of California said.

The court dismissed lawsuits filed by Dignity Health, San Joaquin Community Hospital, and St. Vincent Medical Center. The suit involved...

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