Macon County Samaritan Memorial Hospital v. Shalala

LOKEN, Circuit Judge.

Macon County Samaritan Memorial Hospital (Samaritan) appeals the district court1 judgment upholding the administrative denial of Samaritan’s application for sole community hospital (SCH) status for purposes of Medicare provider reimbursement under 42 U.S.C. § 1395ww. Samaritan argues that the Secretary of Health and Human Services based her denial upon an arbitrary and eapri-*764cious regulation, 42 C.F.R. § 412.92(a)(3) (1988). We are apparently the first court of appeals to consider this issue, which has divided various district courts.2 We uphold the regulation and affirm.

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