Banner Health v. Thomas Price

This appeal challenges the implementation by the Secretary of Health and Human Services (“HHS”) of the Medicare outlier-payment program in the late 1990s and early 2000s. The program provides “supplemental” payments to hospitals to protect them from “bearing a disproportionate share of the[ ] atypical costs” associated with caring for “patients whose hospitalization would be extraordinarily costly or lengthy.” Cty. of L.A. v. Shalala, 192 F.3d 1005, 1009 (D.C. Cir. 1999). A group of twenty-nine non-profit hospitals (“the Hospitals”) principally contend that HHS violated the Administrative…