State agrees to pay UMC $8 million in settlement

CARSON CITY -- The Nevada Supreme Court Tuesday accepted a settlement in which the state agrees to pay $8 million to University Medical Center for treatment of Medicaid patients from 1994 to 1999.

The court dismissed the appeal of Clark County, which runs the hospital, after settlement judge Jeffrey Kaufman reported an agreement had been reached between the medical center and the state Department of Human Resources.

Kaufman will retain authority over the case until March next year to make sure the conditions of the settlement are met.

University Medical Center had claimed it was shortchanged $22 million by the state over the five-year period in its treatment of indigent patients which were covered by Medicaid. It filed a claim but a state hearing officer denied the petition. The hospital filed suit and District Judge Gene Porter upheld the finding of the hearing officer.

But the sides reached an agreement after an appeal had been filed by Clark County with the Supreme Court.

UMC claimed, among other things, that it was not properly reimbursed by Medicaid for its large residency program and for operation of its trauma center, which is different than others in Nevada.

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