County ruling would net UMC $6 million

Art Nadler

Tuesday, June 1, 1999 | 9:55 a.m.

Clark County commissioners were to decide today whether to approve a settlement between the state and University Medical Center that will net the hospital $6 million for the treatment of Medicaid patients.

The agreement ends the hospital's dispute with the state over treatment of Medicaid patients from 1993 to 1998. The hospital had filed a $22 million lawsuit against the state, arguing that the county-run hospital was seeing more Medicaid patients than other Clark County hospitals and should be given a higher reimbursement.

Under the agreement the state will give UMC $2 million and the county will be asked to match that with another $2 million. The federal government, through the Health Care Financing Administration, will then be asked to match the $4 million.

Once the $8 million is obtained, said Bill Hale, chief executive officer of UMC, the county will be paid back its $2 million, resulting in a $6 million net gain for UMC.

Even if the commissioners, who also act as the hospital board of trustees, approve the agreement, it must still be sanctioned by federal agency. As of Friday the agency hadn't approved the settlement.

In addition to the $8 million, the state will pay UMC additional money for treating Medicaid patients who need trauma care and treatment from graduate medical education physicians who work at the hospital.

"While I don't think our rate process is unfair, this shows we have a way to recognize if a hospital is unique in the care it provides," said Charlotte Crawford, director of the state Department of Human Resources. "I think this was a very fair settlement."