Mt. Carmel Mercy Hospital v. Heckler

MEMORANDUM OPINION

DeMASCIO, District Judge.

Plaintiff, Mt. Carmel Mercy Hospital, a provider of Medicare services, filed this complaint to challenge the validity of the new malpractice rule. Under the new rule, reimbursement for malpractice insurance costs is based on the “dollar ratio of the provider’s Medicare paid malpractice losses for the [cost reporting period at issue] and the preceding 4-year period.” 42 C.F.R. § 405.452(b)(1)(h). Prior to the enactment of this rule, plaintiff was reimbursed for its malpractice insurance costs based on its Medicare utilization rate of approximately…