CAlif: Nursing Home Industry Sues State


    By Charles Ornstein, Times Staff Writer

    The state's nursing home industry has filed a lawsuit claiming the California Department of Health Services underpaid long-term care facilities by at least $54 million for their care of Medi-Cal beneficiaries in 2001-2002.

    The California Assn. of Health Facilities, which represents 1,400 long-term care homes, says the state did not pay nursing homes and facilities for the developmentally disabled enough money to cover higher costs associated with energy, workers' compensation and liability insurance.