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Administrative Law Keyed to Asimow
Bowen v. Georgetown University Hospital
Citation:
488 U.S. 204 (1988)Facts
In 1981, the Secretary of Health and Human Services issued a cost-limit schedule that changed the method for calculating the wage index used to determine Medicare reimbursements to hospitals. The new method excluded federal government hospitals’ wages from the calculation. After hospitals challenged the rule, a district court invalidated it in 1983 for failing to comply with APA notice and comment requirements. The Secretary then settled with the hospitals using the pre-1981 method. In 1984, the Secretary sought public comment on a proposal to reissue the 1981 rule retroactively. After the comment period, the Secretary reissued the rule with retroactive effect to July 1981, requiring the respondent hospitals to return over $2 million in reimbursement payments they had received under the pre-1981 method.
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