Annie M. Warner Hospital v. Patricia Roberts Harris, Secretary of the Department of Health, Education and Welfare

OPINION OF THE COURT

ADAMS, Circuit Judge.

The issue presented by this appeal is whether the federal government, under the Medicare program, must reimburse hospitals for a special dues assessment each paid to the Hospital Association of Pennsylvania (HAP). The purpose of the assessment was. to obtain funds for the capitalization of a malpractice insurance company sponsored by the Association. Establishing such a company was necessary to alleviate a crisis in the malpractice insurance market. Appellants, 121 hospitals who are members of HAP, seek to overturn a decision of the Administrator of…