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HOSPITAL SAN JORGE v. SECRETARY OF HEALTH, ED.

No. 79-1171.

616 F.2d 580 (1980)

HOSPITAL SAN JORGE, Plaintiff-Appellant, v. SECRETARY OF HEALTH, EDUCATION AND WELFARE, Defendant-Appellee.

United States Court of Appeals, First Circuit.

Decided February 20, 1980.

Attorney(s) appearing for the Case

Eduardo Morales Coll, Hato Rey, P. R., for plaintiff-appellant.

Jaclyn C. Taner, Asst. Regional Atty., with whom Julio Morales Sanchez, U. S. Atty., Alberto Tellechea, Asst. U. S. Atty., San Juan, P. R. and Frank V. Smith, III, Acting Regional Atty., New York City, were on brief, for defendant-appellee.

Before COFFIN, Chief Judge, CAMPBELL, Circuit Judge, WYZANSKI, Senior District Judge.

WYZANSKI, Senior District Judge:

This appeal raises the question whether in seeking reimbursement of its Part A Medicare costs a hospital which has leased its radiology department must apply such portion of the rent which it received from that department as exceeds the hospital's reasonable costs incurred in that department to reduce the hospital's reasonable costs incurred in other departments.

I. STATUTORY BACKGROUND

Title XVIII of the Social Security...

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