DC Circ. Erases Hospitals' Win Over Reimbursement Cut

Law360 (July 17, 2020, 9:12 PM EDT) -- The D.C. Circuit on Friday found that the Centers for Medicare & Medicaid Services was allowed to slash reimbursement at off-campus hospital locations for 2019, reversing a lower court's finding that CMS exceeded its authority.

A three-judge panel threw out a D.C. federal judge's decision granting summary judgment to a group of hospitals led by the American Hospital Association, which had sued CMS. In this case, the panel applied so-called Chevron deference, a precedent set by the U.S. Supreme Court in 1984 requiring courts to bow to federal rulemakers' interpretations of ambiguous statutes.

The U.S. Department of Health and Human Services has...

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