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CHRIST THE KING MANOR, INC. v. SECRETARY U.S. DHHS

Nos. 12-3401, 12-3501.

730 F.3d 291 (2013)

CHRIST THE KING MANOR, INC.; Baldock Associates, d/b/a Baldock Health Care Center; Bonham Nursing Center; Briarleaf Nursing and Convalescent Center, Inc.; Brookmont Health Care Center, LLC; Cathedral Village; Ellen Memorial Health Care Center-Honesdale, Inc.; Greenleaf Nursing and Convalescent Center, Inc.; Humbert Lane Associates, d/b/a Humbert Lane Nursing and Rehabilitation Center; Jewish Home of Greater Harrisburg; Kinkora Pythian Home Corporation; Kutztown Manor, Inc.; Misericordia Convalescent Home; CPSR Associates, LLC, d/b/a Mon Valley Care Center; Pickering Manor Home; 4144 Schaper Avenue Operating Company, LLC, d/b/a Presque Isle Rehabilitation & Nursing Center; Rheems Nursing and Rehabilitation, LLC; Residence for Rental Care at Shadyside, Ltd.; Perini Service/Southampton Manor Limited, d/b/a Shippensburg Health Care Center; Siemon Nursing Home, Inc.; Windsor, Inc., d/b/a Snyder Memorial Health Care Center; Southwestern Group, Ltd, d/b/a Southwestern Nursing Center; Carbon-Schuylkill Community Hospital, Inc., d/b/a St. Luke's Miners Memorial Geriatric Center; Susquehanna Valley Nursing and Rehabilitation Center, LLC; 890 Weatherwood Lane Operating Company, LLC, d/b/a The Rehabilitation and Nursing Center at Greater Pittsburgh; Westwood Operator, L.P., d/b/a Village at Pennwood; Misericordia Convalescent Home, v. SECRETARY UNITED STATES DEPARTMENT OF HEALTH AND HUMAN SERVICES; Charlene Frizzera, in her official capacity as Acting Administrator of the Centers for Medicare & Medicaid Services (CMS); Harriet Dichter, in her official capacity as Secretary of Public Welfare for the Commonwealth of Pennsylvania, Department of Public Welfare Christ The King Manor, Inc.; Bonham Nursing Center; Cathedral Village; Ellen Memorial Health Care Center-Honesdale, Inc.; Susquehanna Valley Nursing And Rehabilitation Center, LLC; Rheems Nursing & Rehabilitation, LLC Southwestern Group, Ltd. d/b/a Southwestern Nursing Center; CPSR Associates, LLC d/b/a Mon Valley Care Center; Kinkora Pythian Home Corp.; Siemon Nursing Home, Inc. d/b/a Siemon's Lakeview Manor Estate; 4114 Schaper Avenue Operating Co., LLC d/b/a Presque Isle Rehabilitation & Nursing Center; 890 Weatherwood Lane Operating Company, LLC d/b/a The Rehabilitation and Nursing center at Greater Pittsburgh; Briarleaf Nursing & Convalescent Center, Inc.; Brookmont Health Care Center; Kutztown Manor, Inc.; Greenleaf Nursing and Covalescent Center; Windsor, Inc. d/b/a Snyder memorial Health Care Center; Carbon-Schuylkill Community Hospital, Inc. d/b/a St. Luke's Miner's Memorial Geriatric Center; Pickering Manor Home, Appellants in 12-3401 Baldock Associates, d/b/a Baldock Health Care Center; Humbert Lane Associates, d/b/a Humbert Lane Nursing and Rehabilitation Center, Appellants in 12-3501.

United States Court of Appeals, Third Circuit.

Filed: September 19, 2013.

Attorney(s) appearing for the Case

Daniel K. Natirboff [Argued], Capozzi & Associates, Harrisburg, PA, for Appellants.

Sheila Lieber , Jeffrey E. Sandberg , [Argued], United States Dep't of Justice, Washington, DC, for Appellees.

Patrick S. Crawley , Sean A. Kirkpatrick , [Argued], Office of Attorney General of Pennsylvania, Harrisburg, PA, for Appellee Harriet Dichter.

Before: JORDAN and VANASKIE, Circuit Judges, and RAKOFF, Senior District Judge.

OPINION OF THE COURT

JORDAN, Circuit Judge.

This appeal arises from a challenge to the approval by the Secretary of the United States Department of Health and Human Services ("the Secretary" or "HHS") of a 2008 amendment to Pennsylvania's state plan for administering its Medicaid program. Numerous private nursing facilities that provide services to Medicaid recipients argue that the state plan amendment, or "SPA," violates Title XIX of the Social Security...

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