DC Circ. OKs Medicare Adjustments For Rural Hospitals

Law360, Washington (January 27, 2014, 2:09 PM EST) -- The D.C. Circuit on Friday approved a U.S. Department of Health and Human Services policy changing how the agency calculated reimbursements for hospitals treating Medicare patients, dismissing an appeal claiming the change had unfairly targeted rural hospitals.

A three-judge panel affirmed a lower court's dismissal of case brought by Adirondack Medical Center and other hospitals claiming HHS went beyond Congress' intent when it updated the diagnostic weighting used to calculate reimbursements for hospitals. The change, which was made to curtail agency overpayments, essentially removed a "financial...
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