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On Friday, a group of three hospitals filed a case in District of Columbia District Court against the Department of Health and Human Services. The suit alleged systemic underpayment of inpatient stays by Medicare according to the Inpatient Prospective Payment System (IPPS).
According to the complaint, filed by Sharp Chula Vista Medical Center, Grossmont Hospital, and Sharp Memorial Hospital, the IPPS reimburses hospitals according to a formula that determines reimbursement without regard to the amount the facility actually charges for the service. The formula includes factors such as a preset difficulty level or Diagnosis Related Group, a base line cost factor, adjustments for cost of living in the area where the hospital is located, modifiers for teaching facilities, and other factors, resulting in a payment that can be reasonable for the average patient.
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National City’s Paradise Valley Hospital plans to end its obstetrics, labor and delivery services due to a steady decline in births, a pattern seen across San Diego County, health officials said.
With the hospital’s birthing center slated to close Aug. 4, a “comprehensive transition plan” is underway to connect expectant mothers to nearby hospitals with obstetrical services such as Sharp Chula Vista Medical Center, Scripps Mercy Hospital Chula Vista and Scripps Mercy San Diego. Each is located within a 10-mile radius of Paradise Valley.
“Our team has had the privilege of delivering tens of thousands of babies in National City, and the decision to close our obstetrics unit means we will redirect resources to where there is a greater community need,” Neerav Jadeja, Paradise Valley chief executive officer, said in a prepared statement. “The demand for perinatal care, labor and delivery and neonatal services at Paradise Valley is not what it once was, and this has
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