The Yukon-Kuskokwim Health Corp. and Southeast Alaska Regional Health Consortium are seeking about $34 million in contract support costs.
Two major Alaska tribal health care providers have filed suit against the federal government, saying it owes them tens of millions of dollars in unreimbursed funds.
In the YKHC complaint, the corporation’s legal counsel says Becerra and his department owe nearly $26 million in unpaid contract support costs dating back to fiscal year 2016. According to the complaint, those costs may include things like indirect administrative or overhead costs, and costs associated with financial management or other recurring expenses like worker’s compensation insurance.
In the suit, SEARHC argues that DHHS’s Indian Health Service failed to account for the indirect costs of managing “third-party revenues” — the payments SEARHC receives from those parties — when it reimbursed for expenses in 2016. Although SEARHC is primarily funded by the health service under an agreement called the Alaska Tribal Health Compact, the lawsuit argues that the federal government is obligated to pay “full contract support costs,” including the expenses in billing third parties.
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