Court OKs 2005 Medicare Payment Rule

A federal trial court has issued a ruling to uphold a 2005 regulation from CMS that established a new formula for calculating disproportionate share hospital (DSH) payments. Several hospitals had argued that they lacked sufficient time to comment after the agency corrected an error in its description of the Medicare reimbursement adjustment for disproportionate share hospitals. The district court ruled that CMS adequately explained its rulemaking intentions, finding that inconsistent information provided at different points in the rulemaking process did not render the rulemaking invalid. The decision suggests that it may be more difficult for providers to challenge rulemaking, especially in regard to DSH payments, in the future.

Upcoming Congressional Hearings and Markups

House Energy and Commerce Health Subcommittee hearing “Opportunities to Improve the 340B Drug Pricing Program;” 10:00 a.m., 2123 Rayburn Bldg.; July 11

House Energy and Commerce Digital Commerce and Consumer Protection Subcommittee hearing on drug impaired driving; 1:00 p.m., 2123 Rayburn Bldg.; July 11

House Foreign Affairs Africa, Global Health, Global Human Rights, and International Organizations Subcommittee hearing on tuberculosis in Southern Africa; 2:00 p.m., 2200 Rayburn Bldg.; July 12

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