Pa. Hospital Out Of Luck On Merger Reimbursement: DC Circ.

Law360, New York (June 6, 2012, 2:12 PM EDT) -- The D.C. Circuit on Tuesday shot down a Pennsylvania hospital system’s legal quest for Medicare reimbursement for assets that changed hands during a merger, saying federal regulators acted reasonably in concluding that no bona fide sale took place and payment therefore wasn’t warranted.

The controversy centers on compensation Medicare pays to medical providers for depreciation in the value of equipment and buildings used in the delivery of treatment. That compensation is determined by a formula that looks at the original purchase price, the expected life of...
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