The American Hospital Association has filed suit against the federal government for refusing to make reimbursements on Medicare payments that they claim were legal and medically needed.
The move comes after independent auditors working on behalf of the U.S. Department of Health and Human Services ordered reimbursements on some in-patient procedures be revoked. According to the AHA, however, those procedures are clearly included in at least one section of the Medicaid Act.
"Federal law requires Medicare to reimburse hospitals for reasonable and medically necessary services," reads the court filing, adding that the auditors "disagreed only with the setting in which the care was provided."
Thus far reps from the U.S. Justice Department have declined comment on the lawsuit.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.