In Re Heffernan Memorial Hosp. Dist.

AMENDED MEMORANDUM DECISION

The United States Department of Health and Human Services (“HHS”), which through its component, the Health Care Financing Administration (“HCFA”), administers the Federal Health Insurance for the Aged and Disabled program (“Medicare”), moves this Court for an order that it may apply outstanding payments for pre-petition claims submitted by the Debtor to reduce the Debt- or’s outstanding pre-petition overpayment, in accordance with Medicare’s statutes and regulations, the common law right of recoupment, and 11 U.S.C. § 553 .

This Court has jurisdiction to hear this matter pursuant to 28 U.S.C. § 1334 and § 157(b)(1) and General Order No. 312-D of the United States District Court, Southern District of California. This is a core proceeding pursuant to 28 U.S.C. § 157 (2)(G).

APPLICABLE MEDICARE LAW

In order to receive payment for services rendered to a Medicare patient, a “Part A” hospital provider must meet the conditions of participation prescribed by Title XVIII of the Social Security Act and other regulations. 42 U.S.C. § 1395x(e); 42 C.F.R. Part 482. The provider then becomes eligible to execute a provider agreement. See 42 U.S.C. § 1395ee; 42…