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Hardy Wilson Memorial Hospital v. Sebelius

Appellants, five acute-care hospitals, sued the Secretary of the Department of Health and Human Services and the Centers for Medicare and Medicaid Services, alleging that CMS's method for calculating reimbursement payments for costs incurred by providers' psychiatric units between 2003 and 2005 violated 42 U.S.C. �1395ww(b)(3)(A) and was inconsistent with the agency's own regulations. The district court granted CMS's motion for summary judgment, holding that the agency's interpretation of the governing statutory and regulatory provisions was reasonable. The 5th Circuit Court of Appeals reversed and remanded. 5th U.S. Circuit Court of Appeals, No. 09-60312, 08-25-2010

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published Opinion

Before SMITH, GARZA, and CLEMENT, Circuit Judges.

Appellants, five acute-care hospitals (“Providers”), sued the Secretary of the Department of Health and Human Services (“HHS”) and the Centers for Medicare and Medicaid Services (“CMS”), alleging that CMS’s method for calculating reimbursement payments for costs incurred by Providers’ psychiatric units between 2003 and 2005 violated 42 U.S.C. § 1395ww(b)(3)(A) and was inconsistent with the agency’s own regulations. The district court granted CMS’s motion for summary judgment, holding that the agency’s interpretation of the governing statutory and regulatory provisions was reasonable. For the reasons set forth below, we REVERSE and REMAND.

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