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NORTHWEST HOSPITAL INC. v. HOSPITAL SERVICE CORP.

No. 80-2857.

687 F.2d 985 (1982)

NORTHWEST HOSPITAL, INC., Plaintiff-Appellee, v. HOSPITAL SERVICE CORP., Blue Cross Association, Patricia Harris, Secretary of Health and Human Services, Defendants-Appellants.

United States Court of Appeals, Seventh Circuit.

Decided August 25, 1982.

Attorney(s) appearing for the Case

Stephen B. Weiss, Health Care Financing Div., Baltimore, Md., for defendants-appellants.

Carl P. Clavelli, Sherman C. Magidson, Chicago, Ill., for plaintiff-appellee.

Before CUMMINGS, Chief Judge, SWYGERT, Senior Circuit Judge, and CUDAHY, Circuit Judge.

CUDAHY, Circuit Judge.

This case involves the proper treatment, under the Medicare program, of interest payments made by a non-profit Medicare provider to three individuals affiliated with the provider. The Secretary of Health and Human Services (the "Secretary") disallowed these payments on the grounds that the applicable Medicare regulations prohibited reimbursement for all interest incurred on "indebtedness established with lenders or lending organizations[] related...

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