Foothill Hospital-Morris L. Johnston Memorial v. Leavitt

MEMORANDUM OPINION

ELLEN SEGAL HUVELLE, District Judge.

Plaintiff is a Medicare provider seeking reimbursement for the unpaid debts of Medicare beneficiaries. Defendant denied plaintiffs reimbursement claims, ruling that the debts could not be deemed “uncollectible” under 42 C.F.R. § 413.89(e) because plaintiff had referred these bad debts to an outside collection agency. Plaintiff argues that defendant’s current view constitutes a change in policy, in violation of 42 U.S.C. § 1395f note (hereinafter “Bad Debt Moratorium” or “Moratorium”). In the alternative, plaintiff contends that defendant’s…