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Metropolitan Digest / LOS ANGELES COUNTY NEWS IN BRIEF

LOS ANGELES COUNTY : U.S. Tells County It May Not Get Funding of $600 Million

October 14, 1994

The federal government told Los Angeles County on Thursday it may not get $600 million in reimbursements that already have been tallied into the 1994-95 county budget.

The federal Health Care Financing Agency is questioning whether the county is entitled to the money and has given local officials 60 days to make a case for it, said Chief Administrative Officer Sally Reed.

"They are seeking more information and raising a number of questions (about) whether or not they will approve the claims," Reed said. "We're concerned because obviously there is a need to see those dollars in the budget."

The County Board of Supervisors included the reimbursements in its budget to avoid making deep cuts in the Department of Health Services and other county departments.

The financing agency accepts claims from local governments seeking reimbursement for administrative costs involved in treating Medi-Cal patients. The county is asking for reimbursement for such costs over three years.

"That they would deny all of the money is not likely, but denying a portion is possible," Reed said.

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