Pharmacies Lose Suit to Block Medi-Cal Cuts
Jul 8, 2008 6:00 AM
SACRAMENTO, Calif. — Yesterday a California state court denied a motion on behalf of eight independent retail pharmacies to stop the 10% Medi-Cal provider cuts, reported the California Pharmacists Association, here. Medi-Cal is the name of the state’s Medicaid program. The pharmacies sought a temporary restraining order from Sacramento Superior Court against the California Department of Health Care Services and its director, Sandra Shewry, to block the cuts from being implemented. The court sided with the department, finding that the pharmacies had not demonstrated that the department had to obtain federal approval prior to implementing the cuts. The court also found that the risk of harm presented by the pharmacies was speculative. “We are sorely disappointed with the outcome of this lawsuit,” said Lynn Rolston, chief executive officer of the association. “However, the fight is far from over. There are two other lawsuits pending in federal court, and we are confident that we have a strong case to stop the 10% provider cuts. Unfortunately, for now, the cuts will be implemented as scheduled, which could result in tragic consequences for pharmacies and the patients they serve.”
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