BETH ISRAEL HOSPITAL, Plaintiff, Appellant, v. Margaret M. HECKLER, Secretary of Health and Human Services, Defendant, Appellee

BOWNES, Circuit Judge.

In this appeal, Beth Israel Hospital (Hospital) challenges a portion of the accounting procedures the Secretary of Health and Human Services has directed hospitals to utilize in computing their Medicare cost reimbursement." The Hospital contends that the Secretary’s implementation of her interpretive approach to the governing regulations has resulted in an illegal subsidization of the Medicare program by non-Medicare payors, see 42 C.F.R. § 405.452(b) (1977), is arbitrary and capricious as a matter of law, and is unsupported by substantial evidence. The district court…