HCA Health Services of Midwest, Inc. v. Bowen

CANBY, Circuit Judge:

Appellants are acute care hospitals that provide services to Medicare patients. The hospitals are seeking to overturn the decision of the Secretary of Health and Human Services, the agency in charge of administering the Medicare program, refusing reimbursement for certain claimed costs for the years 1980 and 1981. During these years the Medicare Act mandated that hospitals and other Part A providers (such as extended care facilities, and home health services) be reimbursed by the program for the “reasonable cost” of rendering covered services to eligible beneficiaries, 42…