GUERNSEY MEMORIAL HOSPITAL, Plaintiff-Appellant, v. SECRETARY OF HEALTH AND HUMAN SERVICES, Defendant-Appellee

DAVID A. NELSON, Circuit Judge.

Appellant Guernsey Memorial Hospital, a participant in the federal government’s Medicare program, is entitled to reimbursement by the Department of Health and Human Services for reasonable costs incurred in providing services to Medicare patients. Such costs include the cost of money employed in financing hospital improvements.

The particular costs at issue in this case are known technically as “advance refunding” or “defeasance” costs: costs incurred in connection with the refunding of bonded mortgage indebtedness ahead of schedule in order to obtain new…