The Palo Alto Accountable and Affordable Care Initiative, challenged by certain hospitals and the California Hospital Association in Stanford Health Care v. City of Palo Alto, would impose an “acceptable payment amount” on the compensation hospitals and other medical providers can receive from insurers and certain other payers for the care provided to patients. “[T]he fact that no municipality has ever imposed price controls on hospitals should, at the very least, raise red flags ... about whether Palo Alto has the legal authority to do so,” states the AHA brief, filed in California superior court in Santa Clara County. “In addition, history reveals that Congress expressly invited … earlier State rate-setting experiments. Such an invitation is not only lacking today, but the Affordable Care Act provides a powerful signal that Congress sought to bring down the costs of hospital services using measures other than rate caps.”

Related News Articles

Headline
Community Health Improvement Week (June 1-5) celebrates people coming together to create healthier communities. And that's never been more important than now…
Headline
Thirty-three emerging hospital and health system leaders from 20 states will participate in the inaugural class of the AHA’s Next Generation Leaders Fellowship…
Headline
The AHA today debuted a new video that spotlights the value of membership in the AHA, including how the association is telling hospital and health systems’…
Headline
The AHA, joined by America’s Essential Hospitals, Association of American Medical Colleges, and Federation of American Hospitals today urged the Supreme Court…
Headline
The Centers for Medicare & Medicaid Services next month will begin collecting and distributing risk adjustment payments in the permanent risk adjustment…
Headline
The Affordable Care Act requires the federal government to pay insurers the full amount of their losses under the temporary Risk Corridors Program and insurers…