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BLUE CROSS ASS'N v. HARRIS

Nos. 79-1732, 79-1733.

622 F.2d 972 (1980)

BLUE CROSS ASSOCIATION, Appellee, and American Hospital Association, Intervenor-Appellee, v. Patricia R. HARRIS, Secretary of Health, Education & Welfare, Leonard Schaeffer, Administrator, Health Care Financing Administration, Appellants. MISSOURI HOSPITAL ASSOCIATION, a pro forma decree corporation, Kansas City Area Hospital Association, a corporation, Hospital Association of Metropolitan St. Louis, a corporation, Kansas Hospital Association, a corporation, Appellees, and American Hospital Association, Intervenor-Appellee, v. Patricia R. HARRIS, Secretary of the United States Department of Health, Education & Welfare, Leonard D. Schaeffer, Administrator of the Health Care Financing Administration, Appellants.

United States Court of Appeals, Eighth Circuit.

Decided June 6, 1980.

Rehearing and Rehearing Denied June 30, 1980.

Attorney(s) appearing for the Case

Barbara L. Gordon, Atty., Civ. Div., Dept. of Justice, Washington, D. C. (argued), Alice Daniel, Acting Asst. Atty. Gen., Civ. Div., William G. Kanter, Atty., Civ. Div., Dept. of Justice, Washington, D. C., Ronald S. Reed, former U. S. Atty., St. Louis, Mo., and Lloyd M. Weinerman, Office of the General Counsel, Dept. of HEW, Baltimore, Md., on brief, for appellants.

James C. Munson, Kirkland & Ellis, Chicago, Ill. (argued), James D. Adducci and Kathleen Kelly Spear, Chicago, Ill., Thomas E. Deacy, Jr. and Philip B. Grubaugh, Deacy & Deacy, Kansas City, Mo., Cullen Coil, Carson, Monaco, Coil, Riley & McMillin, Jefferson City, Mo., Richard L. Epstein and Jay H. Hedgepeth, American Hospital Assn., Chicago, Ill., John C. Shepherd, Coburn, Croft, Shepherd & Herzog, St. Louis, Mo., Wayne T. Stratton, Goodell, Stratton, Edmonds, Palmer & Wright, Topeka, Kan., and Carl H. Helmstetter, Spencer, Fane, Britt & Browne, Kansas City, Mo., on brief, for appellees.

Before LAY, Chief Judge and BRIGHT and HENLEY, Circuit Judges.

Rehearing and Rehearing En Banc Denied June 30, 1980.

BRIGHT, Circuit Judge.

Patricia Harris, Secretary of Health, Education and Welfare, and Leonard Schaeffer, Administrator of the Health Care Financing Administration (collectively, the Secretary or HEW), bring these consolidated appeals from a judgment of the district court in favor of Blue Cross Association, et al. (Blue Cross). Blue Cross currently serves as a fiscal intermediary, an agency which deals...

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