John Muir Memorial Hospital, Inc. v. Schweiker

WRIGHT, Circuit Judge.

We reverse the judgments in both of these appeals. The district courts held that the intermediate care units in the two hospitals qualified for “special care unit” Medicare reimbursement.

The Memorial Hospital of Gardena and the John Muir Memorial Hospital established “Maxicare” and “Definite Care” units, respectively, to provide intermediate care to patients who did not require intensive care but who were too seriously ill to be cared for on general medical-surgical floors. The hospitals classified these units as “special care units” (SCUs) and applied for the higher SCU…