Springdale Memorial Hospital Association, Inc. v. Otis R. Bowen, M.D., Secretary of Health & Human Services

JOHN R. GIBSON, Circuit Judge.

The issue before us is when can a hospital obtain administrative review of the payment amount it receives under the new Medicare prospective payment system. In HCFA Ruling 84-1, 49 Fed.Reg. 22,413 (1984), the Secretary concluded that, like under the old cost reimbursement system, a hospital can obtain review only after it files a year-end cost report and receives a Notice of Program Reimbursement (“NPR”), the document that states the amount due the hospital under Medicare. When Congress adopted the prospective payment system in 1983, it added a conforming…