Rate Reductions Require HHS To Show Its Work First

Law360, New York (September 29, 2015, 11:24 AM EDT) -- Mark D. Polston

Christopher P. Kenny On Sept. 21, 2015, the U.S. District Court for the District of Columbia ruled that the secretary of the U.S. Department of Health and Human Services failed to provide a meaningful opportunity to comment on her 0.2 percent reduction in Medicare inpatient hospital payment rates related to her “two-midnight rule” for inpatient admissions, in violation of the Administrative Procedure Act.

The decision in Shands Jacksonville Medical Center v. Burwell, case number 1:14-cv-00263, is an important victory for the more than 1,000 hospitals involved in the litigation itself, but also has implications for future changes to...

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