Shalala

ORDER RE: CROSS-MOTIONS FOR SUMMARY JUDGMENT

I. Introduction

On October 13, 1998, plaintiff filed suit in this Court, challenging the validity of a Medicare regulation promulgated by the Secretary of Health and Human Services (“the Secretary”).

The matter is currently before the Court on the parties’ cross motions for summary judgment. The facts are not in dispute.

II. Statutory Background

The Medicare program, established by Title XVIII of the Social Security Act, 42 U.S.C. § 1395 et seq., provides payment for medical care for the aged and disabled. Eligible beneficiaries receive medical care from “providers,” which are medical care facilities that have entered into agreements with the Secretary to furnish care, and the providers are then reimbursed by the Medicare program.

Part A of the Medicare program authorizes payments for institutional care provided primarily on an inpatient basis. See 42 U.S.C. § 1395c-1395i-4. Part B of the program authorizes payments primarily for outpatient services and durable medical equipment. See 42 U.S.C. §§ 1395j-1395w-4.

Medical care facilities, such as plaintiff, receive reimbursement under Part A or Part B (or both) from a “fiscal…