Contra Costa Regional Medical Center, San Francisco General Hospital, Stanford Hospital & Clinics, UCSF Medical Center v. Robert F. Kennedy Jr., Secretary of Health and Human Services

I. INTRODUCTION

17 Plaintiffs, four hospitals that receive Medicare reimbursement from the federal 18 government, seek reinstatement of a reimbursement determination appeal that they accidentally 19 withdrew. They do so on the grounds that the Provider Reimbursement Review Board’s refusal to 20 reinstate violates the Administrative Procedure Act as arbitrary and capricious, abuse of discretion, 21 and contrary to law. Defendant disagrees. Plaintiffs and Defendant have filed cross motions for 22 summary judgement on this issue. While the denial of the reinstatement request represents a stark 23 application of the rules in light of the seemingly innocent mistake involved, it cannot be said that 24 it lacks a reasonable explanation, support in the record, or appropriate application of law. 25 Accordingly, Defendant’s motion for summary judgment is granted and Plaintiff’s cross motion is 26 denied.1 27 1 II. BACKGROUND 2 1. Medicare Reimbursement Scheme 3 Hospitals providing inpatient services to Medicare patients are eligible for reimbursement, 4 with amounts depending on fixed “diagnostic related group” (“DRG”) rates. 42 U.S.C. §§…