DC Circ. Backs HHS In Hospital Merger Reimbursement Row

Law360, Washington (April 11, 2014, 6:08 PM ET) -- The D.C. Circuit on Friday upheld a U.S. Department of Health and Human Services decision denying hospital system Dignity Health a Medicare payment for allegedly inadequate depreciation taken by a hospital that it acquired, ruling the merger didn't qualify for reimbursement.

HHS and a district court correctly found that Dignity — known previously as Catholic Healthcare West — had paid well under market value when acquiring Santa Maria, Calif.-based Marian Regional Medical Center, meaning it couldn't claim additional reimbursement for purportedly inadequate asset depreciation reimbursement prior...
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