New York hospital suing state over $1B in ‘deprived’ DSH funds – Becker’s Hospital Review

East Meadow, N.Y.-based Nassau University Medical Center is filing a lawsuit against New York, accusing the state of "longstanding violations of federal Medicaid law that deprived the hospital of more than $1 billion in aid."

The safety net hospital alleges that the state "orchestrated a ruse to mislead the federal government" by requiring the hospital to front the state's contractual share of the disproportionate share hospital funds from its own operating account, according to a Nov. 21 NUMC news release.

The hospital said the alleged scheme resulted in a 50% reduction of its aid annually. NUMC also alleges that the state's financial maneuver has been covered up by the state and its officials for more than two decades.

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