Sebelius

PROCEEDINGS: HEARING ON APPEAL OF SECRETARY’S MAY 15, 2008 FINAL ADMINISTRATIVE DECISION (doc. # 19)

Rita Sanchez, Courtroom Deputy.

Rosalyn Adams, Court Reporter.

Case called, and counsel make their appearance.

The Court presents its tentative ruling (doc. # 23), and hears oral arguments from counsel. The Court takes the matter under submission.

Later, upon further review of the Parties’ papers and the Parties’ oral arguments, the Court finds that the tentative ruling is the order of the Court.

PROCEEDINGS (IN CHAMBERS): TENTATIVE RULING ON APPEAL OF SECRETARY’S MAY 15, 2008 FINAL ADMINISTRATIVE DECISION (doc. # 19)

I. Tentative Ruling

On July 14, 2008, Plaintiff Vitality Rehab., Inc. (Witality”) filed a complaint challenging the May 15, 2008 final administrative decision of Defendant Secretary of Health and Human Services (“Secretary”). In that decision, the Secretary denied Vitality’s claims for reimbursement of bad debts for the fiscal year of 1999. These bad debts were unpaid deductibles and coinsurance amounts related to outpatient therapy services that Vitality provided to Medicare eligible patients who were dually eligible for Medicare and Medicaid in the fiscal…