St. Luke's Hospital v. Sebelius

MEMORANDUM

JAMES ROBERTSON, District Judge.

Allentown Osteopathic Medical Center, a Medicare provider, merged with St. Luke’s Hospital on January 1, 1997. St. Luke’s, the surviving entity, sought to recover from Medicare a “loss” on Allentown’s depreciable assets that it asserts was recognized in the merger. That claim was denied by the assigned Medicare intermediary on the ground that the merger was not a “bona fide sale.” The Provider Reimbursement Review Board reversed that decision on appeal, but was itself overruled by the Administrator for the Centers for Medicare and Medicaid Services.…