The Arizona Hospital and Healthcare Association has dropped its lawsuit against the state. The group had sued over a 5 percent cut in the reimbursement rate from the state for hospitals and physicians treating Medicaid patients.
The cut took effect last October, and was part of last year’s state budget. It followed another 5 percent rate cut in April, and a previous rate freeze. The Hospital and Healthcare Association had sued to try and block the latest provider rate cut, but a federal judge dismissed the suit.
Association President and CEO Laurie Liles said her group is now working with state lawmakers to find solutions to several problems with health care funding.
"We considered our options, and we could have chosen to pursue the case or to appeal it. We chose not to because it’s the right thing to do, it’s in the interest of all parties for us to work together and move forward," Liles said.
Liles said she hopes that work leads to action on a number of issues, in addition to the 5 percent provider rate cut.
Senate President Steve Pierce called the decision to drop the lawsuit an olive branch from the hospitals and hopes to take up the issues next year.