Arizona Rehabilitation Hospital, Inc. v. Shalala

ORDER

MATHIS, United States Magistrate Judge.

BACKGROUND

Plaintiffs, eight health care institutions, provide rehabilitation care and furnish services under Medicare. Medicare traditionally allowed providers reimbursement for the reasonable cost of furnishing services to Medicare recipients. Under provisions first enacted in 1972, health care providers like Plaintiffs were permitted reimbursement for the lower of their costs or charges (“LCC”). This provision did not specify the time period used for determining the LCC, but legislative reports stated that the LCC principle should not be used to…