Rye Psychiatric Hospital Center, Inc. v. Shalala

KAPLAN, District Judge.

Since the 1960s, the Social Security Act’s Medicare provisions, 42 U.S.C. §§ 1395-1395ccc (1988) (“Medicare”), have reimbursed hospitals and other providers for many of the costs of medical care provided to qualifying persons. This case concerns the relationship between two of the hospital cost reimbursement provisions of Medicare.

The prospective payment system (“PPS”), established pursuant to the Social Security Amendments of 1983, requires the Secretary of the Department of Health and Human Services (the “Secretary”) to increase payments to hospitals covered by PPS…