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Dispute over Medicaid payments kicked back to chancery court

JACKSON — A long legal battle between the Mississippi Division of Medicaid and a dozen hospitals is headed back to chancery court.

The dispute is about payments Medicaid made to the hospitals for outpatient services in 2001.

Medicaid said in 2010 that it had mistakenly overpaid hospitals nine years earlier because it used an outdated payment formula. The hospitals, in turn, said Medicaid had underpaid them.

The amount in dispute is almost $2.2 million, collectively.

Medicaid and the hospitals argued over whether the dispute should be decided in circuit or chancery court. The state Supreme Court on Thursday said Hinds County chancery court is the proper venue, and returned the case there.

The 12 hospitals are in 10 cities: Biloxi, Brandon, Brookhaven, Clarksdale, Flowood, Greenville, Grenada, Jackson, Meridian and Natchez.

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