DC Circ. Backs HHS Financial Test For Equipment Suppliers

Law360, New York (June 1, 2012, 8:31 PM EDT) -- The D.C. Circuit said Friday that the U.S. Department of Health and Human Services' requirement for financial background tests in the competitive acquisition of durable medical equipment for Medicare was not subject to judicial review, upholding a lower court's rejection of a challenge to the rule.

A three-judge panel agreed with a district court's dismissal of the suit, which found that HHS' durable medical equipment, prosthetics, orthotics and supplies, or DMEPOS, statute is valid and is barred from judicial oversight.

“Because we agree that [a subsection...
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