Mathews

ORDER GRANTING DEFENDANTS’ MOTION FOR SUMMARY JUDGMENT

Plaintiff challenges the determination by the Secretary of Health, Education, and Welfare (hereinafter the “Secretary”) that certain expenditures were not reimbursable under the federally funded health care program popularly known as “Medicare” and established pursuant to the Medicare Act. 42 U.S.C. § 1395 et seq. To be determined by this action is the question whether plaintiff, Hillside Community Hospital of Ukiah (hereinafter “Hillside Nonprofit”), is entitled to reimbursement under the Medicare Act and its implementing regulations, particularly those found at 20 C.F.R. sections 405.415, 405.419, and 405.427, for depreciation and interest expenses incurred in connection with the purchase of a hospital building and land from a joint venture known as Hillside Associates.

Facts

Plaintiff is a nonprofit corporation that qualifies as a “provider” of Medicare services within the meaning of the applicable provision of the Medicare Act. 42 U.S.C. § 1395x. Defendants are the Secretary of Health, Education, and Welfare, Blue Cross Association, and Blue Cross Hospital Service of California (hereinafter “Hospital Service”). Blue…