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Psychiatric Hospitals Secure Right to Adjustment of Daily Hospitalization Rates under Brazil’s Public Health System (SUS)

August 2025

Psychiatric Hospitals Secure Right to Adjustment of Daily Hospitalization Rates under Brazil’s Public Health System (SUS)

Administrative and Regulatory Law, Civil Law, Constitutional Law, Direito Civil

Bruno Calfat Advogados represents several psychiatric hospitals and an investment fund in the enforcement of trial court decision. This judgment was rendered in a lawsuit filed by the Brazilian Federation of Hospitals (FBH) and recognized the right of psychiatric hospitals providing services to the Brazilian Public Health System (SUS) to an adjustment of the global daily hospitalization rate, due to the lack of update of such amounts under contracts entered into between the hospitals and the public administration for the provision of services to the population.

In the enforcement proceedings, favorable lower court decisions were obtained, recognizing the enforceability of the trial court decision rendered in the FBH’s lawsuit and the legitimacy of the psychiatric hospitals to enforce the amounts owed, since they had not authorized FBH to file the collective lawsuit on their behalf.

Against these decisions, the Federal Government filed an appeal, which was denied by the Federal Regional Court of the 1st Region (TRF1). On that occasion, the legality of issuing a “precatório” (formal court-ordered document for the payment of amounts owed by the government in Brazil, after a final and unappealable judgment against it) for the undisputed amount owed to one psychiatric hospital was also confirmed, resulting in a significant economic benefit for it.

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