Transtn Hosp Corp LA v. Shalala, Donna E.

Opinion for the Court filed by Circuit Judge GARLAND.

GARLAND, Circuit Judge:

The Medicare program reimburses certain categories of hospitals on a “reasonable cost” basis, rather than under the generally applicable, and less remunerative, “Prospective Payment System.” Long-term care hospitals are one such category. Plaintiffs own two new facilities for which they sought classification as long-term care hospitals before they began admitting patients. The Department of Health and Human Services (HHS) rejected plaintiffs’ request, citing regulations that require new hospitals to have six months of…