Hospitals receive $666 million in back payments from Medicare.

            Back in 1986, the Reagan administration changed the way hospitals would be reimbursed for providing medical care to patients of Medicare and Medicaid. The reimbursement plan was designed to limit medical care to the low-income and poor people. The plan intended to limit medical costs to people who can afford them. Many non-profit hospitals continued treatment for their poor patients. Finally, in 1997, the rule was changed and a law suit began between many of the non-profit hospitals and the Center for Medicare and Medicaid. The number of hospitals soon grew to 667 hospitals which provided medical care for the poor class.

            The law case began in 2002 against Centers for Medicare and Medicaid and the Department of Health and Human Services. The 667 hospitals finally won the case in 2004 when a federal judge of Washington, D.C. ruled in their favor. After the government lost the appeal case, negotiations for back payments began. Two years later, the court ruled to reward the hospitals with $666 million in the settlement.

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