The Centers for Medicare & Medicaid Services (CMS) has settled its years long dispute with over the rate of pay cuts and offsets for hospitals in rural areas. The centers have battled with over 2,000 hospitals over errors in reimbursements and now could end up coughing up nearly $3 billion.
The problem stemmed from a law passed 15 years ago requiring pay cuts to offset the cost of hospitals that were deemed mandatory in rural areas. The reimbursements will come to hospitals across the country including over 200 locations in California that stand to take in roughly $310 million.
Universal Healthcare Systems (UHS) will also see a windfall from the ruling, taking in a project $35 million in reimbursements from Medicare. CMS reached an agreement on April 5 after a federal court of appeals put down an earlier ruling that sided with CMS and abstained them from making the reimbursement payouts.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.