Dominguez Valley Hospital v. Shalala

LEVI, District Judge:

Appellant hospitals appeal from a decision of the Secretary of Health and Human Services (“the Secretary”) declining to reimburse the hospitals for stock options granted to certain employees. The hospitals participate in the Medicare program and seek reimbursement from the Secretary under that program. The Secretary refused reimbursement for the stock options, finding that under generally accepted accounting principles (“GAAP”),1 the hospitals had not incurred *834any costs.2 The district court affirmed the Secretary’s decision, granting the secretary’s motion for summary…