Phoenix Baptist Hospital and Medical Center, Inc. v. United States
Opinion
Opinion
Farris, J.
Phoenix Baptist Hospital and various Arizona health care providers appeal the dismissal of their Federal Tort Claims Act action, alleging that the Department of Health and Human Services was negligent in overseeing the administration of the experimental Arizona Health Care Cost Containment System. The district court held that it lacked subject matter jurisdiction because the federal government was protected by the discretionary function exeep tion to liability under the FTCA, 28 U.S.C. § 2680 (a). We affirm.
BACKGROUND
The procedural and factual background of this case is set forth in the district court’s opinion. Phoenix Baptist Hospital and Medical Center v. United States, 728 F.Supp. 1423, 1424-25 (D.Ariz.1989).
DISCUSSION
Phoenix Baptist Hospital argues that certain “prime contractors” employed under the Arizona medicaid plan failed to satisfy federal financial disclosure requirements, see, e.g., 42 C.F.R. §§ 455.104-105 , and that the Department of Health and Human Services was negligent in not withholding federal funds from the Arizona medicaid program.
42 U.S.C. § 1396c governs the withholding of federal funds for failure to comply with federal medicaid requirements.…