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JOHN MUIR MEMORIAL HOSPITAL, INC. v. SCHWEIKER

Nos. 80-4421, 80-5614.

664 F.2d 1337 (1982)

JOHN MUIR MEMORIAL HOSPITAL, INC., Plaintiff-Appellee, v. Richard S. SCHWEIKER, Secretary of Health and Human Services, Defendant-Appellant. MEMORIAL HOSPITAL OF GARDENA, a California Corporation, Plaintiff-Appellee, v. Richard S. SCHWEIKER, Secretary of Health and Human Services; Blue Cross Association, an Illinois Corporation; and Blue Cross of Southern California, a California corporation, Defendants-Appellants.

United States Court of Appeals, Ninth Circuit.

Decided November 12, 1981.

Attorney(s) appearing for the Case

Maria P. Rivera, Asst. U.S. Atty., San Francisco, Cal., Stephen D. Peterson, Asst. U. S. Atty., Los Angeles, Cal., Lelia H. Carp, Department of Health and Human Services, Baltimore, Md., Jeanne Schulte Scott, Department of Health and Human Services, Washington, D. C., Robert S. Greenspan, Michael J. Singer, Washington, D. C., for Schweiker.

Patric Hooper, Weissburg & Aronson, Inc., Los Angeles, Cal., for John Muir Hospital.

Kenneth B. Bley, Fulop, Rolston, Burns & McKettrick, Beverly Hills, Cal., for Memorial Hospital of Gardena.

Before WRIGHT, WALLACE and ANDERSON, Circuit Judges.

WRIGHT, Circuit Judge.

We reverse the judgments in both of these appeals. The district courts held that the intermediate care units in the two hospitals qualified for "special care unit" Medicare reimbursement.

The Memorial Hospital of Gardena and the John Muir Memorial Hospital established "Maxicare" and "Definite Care" units, respectively, to provide intermediate care to patients who did not require intensive care but who were too seriously ill to be cared...

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