Goleta Valley Community Hospital v. Schweiker

647 F.2d 894 GOLETA VALLEY COMMUNITY HOSPITAL, a California non-profit corporation, Plaintiff-Appellant, v. Richard S. SCHWEIKER, Secretary of the United States Department of Health and Human Services; Blue Cross of Southern California, a California corporation; Blue Cross Association, an Illinois corporation, Defendants-Appellees. No. 77-3944. United States Court of Appeals, Ninth Circuit. Argued and Submitted Feb. 4, 1981. Decided May 4, 1981. Kurt H. Pyle, Schramm & Raddue, Santa Barbara, Cal., for plaintiff-appellant. Henry Eigles, Baltimore, Md., for defendants-appellees; Frederick M. Brosio, Jr., Asst. U. S. Atty., Los Angeles, Cal., on brief. Appeal from the United States District Court for the Central District of California. Before WALLACE and SCHROEDER, Circuit Judges, and SOLOMON, * District Judge. WALLACE, Circuit Judge: 1 Appellant Goleta Valley Community Hospital (Hospital) was denied medicare reimbursement for interest costs and depreciation costs attributable to the purchase of a facility from San Marcos Associates (SMA). The Secretary of Health and Human Services (Secretary) denied reimbursement for these costs pursuant to 42 C.F.R. § 405.427 1 and §…