Thompson

We must decide whether the Secretary of the Department of Health and Human Services correctly denied reimbursement to plaintiff hospitals for services to certain low-income populations based on his interpretation of the Medicare statute’s Disproportionate Share Hospital (DSH) calculation. The district court held that the Secretary’s interpretation of the statute governing reimbursement violated the text and intent of the statute and granted plaintiffs’ motion for summary judgment. We agree with the district court and affirm for the reasons stated below.

DISCUSSION

I. THE REGULATORY FRAMEWORK

Under the Medicare program, Title XVIII of the Social Security Act, the federal government reimburses hospitals for certain medical services provided to eligible individuals. 42 U.S.C. §§ 1395 -1395ggg. Under Title XIX of the Act, the Medicaid program, the federal government provides funds to states to offset some of the expense of furnishing medical services to low-income persons. Id. §§ 1396-1396v; 42 C.F.R. § 430 . To receive federal assistance, a state must submit a plan for approval by the Secretary. 42 U.S.C. § 1396a. Only expenditures made under an approved state plan are eligible…