Faith Hospital Ass'n v. United States

In this Medicare provider case, brought under the Tucker Act, 28 U.S.C. § 1491 (1970), the question is whether the medical insurance benefits available under Part B of the Medicare Act permit reimbursement of a sum paid by hospital-based physicians to the hospital for the monopoly it granted them in four specialized departments. Medicare had reimbursed a number of patients for doctors’ charges which (it later discovered) included, in addition to the sums paid to and retained by the doctors for their *258services and to amounts designed to cover departmental operating costs, a further element…