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NEW: Company Sues State over Medicaid Cuts

Wednesday, May 11, 2011


Spurwink|ri — a private, nonprofit health care service provider — is suing the State of Rhode Island in Superior Court seeking to reverse Medicaid cuts that it says jeopardize long-term services for 95 individuals with developmental disabilities and mental health problems.

Last year, the RI Department of Behavioral Healthcare, Developmental Disabilities and Hospitals (BHDDH) cut $1,117,073 from spurwink|ri's allocation under the Global Medicaid Waiver Program—a move that, if not reversed, will result in the layoff of some 20 staff.

Spurwink|ri claims that the changes were made without the required approval of the General Assembly and the Federal Center for Medicare and Medicaid Services. The suit names Steven M. Constantino, Secretary of the Executive Office of Health and Human Services and Craig Stenning, BHDDH director, as defendants.

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