New Lifecare Hospitals of Chester County LLC et al. v. Azar

Docket No.
1:19-cv-00705
District Court
District of Columbia

Goal

  • Award damages
  • Block enforcement of agency action
  • Declaration that agency action is unlawful

Litigation Content

Why this Matters:

The Plaintiffs argue that a Medicare payment regulation concerning the formula for site neutral payments and high-cost outlier cases for certain long term care hospitals violates the Administrative Procedure Act and Social Security Act. Restrictions on Medicare’s ability to incorporate budget neutrality adjustments to site neutral payments for inpatient services would remove an important tool for ensuring that Medicare beneficiaries could be safely and efficiently treated in a lower-cost setting.

Potential Impact:

Medicare’s ability to make certain site neutral payment adjustments can help promote federal savings and lower health care costs for patients.