DC Circ. Backs Kaiser's Medicare Staffing Reimbursements

Law360, New York (March 5, 2013, 3:40 PM EST) -- The D.C. Circuit determined Tuesday that Kaiser Foundation Hospitals were entitled to revise estimates of staffing levels related to Medicare reimbursement that were botched in the 1990s, dismissing federal officials’ arguments as narrow and arbitrary.

In affirming a lower court decision, the D.C. Circuit rejected arguments by U.S. Department of Health and Human Services Secretary Kathleen Sebelius that the admittedly inaccurate staffing data by which graduate medical program staff member salaries are reimbursed under Medicare cannot be reopened based on a three-year revision deadline.

In 1997,...
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