Tucson Medical Center v. Heckler

MEMORANDUM

OBERDORFER, District Judge.

I

For cost reporting years before October 1, 1983, Medicare 1 applied its “cost reimbursement system” to repay hospitals that had furnished inpatient services to Medicare patients. Under this system, Medi care determined the “reasonable cost” of the inpatient services that a hospital had provided to patients, and then reimbursed the hospitals in that amount or in the amount of the hospital’s customary charges, whichever was less. 42 U.S.C. § 1395f(b). At the close of a fiscal year, a hospital would submit a cost report to its “fiscal intermediary,” usually…