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MENORAH MEDICAL CENTER v. HECKLER

No. 84-2257.

768 F.2d 292 (1985)

MENORAH MEDICAL CENTER, Freeman Hospital, McCune Brooks Hospital, Memorial Community Hospital, Gentry County Memorial Hospital, Springfield General Osteopathic Hospital, Johnson County Hospital, Skaggs Community Hospital, St. John's Medical & H.H.A., Lakeside Hospital, St. Francis Hospital, Research Medical Center, Trinity Lutheran Hospital, Bates County Memorial Hospital, Lester E. Cox Medical Center, Hedrick Medical Center, Beech Medical Center, Nevada City Hospital & H.H.A., Fairfax Community Hospital, Boone Hospital Center, Barton County Memorial Hospital, West Plains Memorial Hospital, St. Joseph Hospital (St. Joseph, Mo.), Independence San. & Hospital, North Kansas City Memorial Hospital, Truman Medical Center, East Baptist Memorial Hospital, Noll Memorial Hospital, South Barry County Memorial Hospital, Callaway Memorial Hospital, St. Luke's Hospital of Kansas City, Sullivan County Memorial Hospital, Sac-Osage Hospital, Medical Center of Independence, Golden Valley Memorial Hospital, Liberty Hospital, Appellees, v. Margaret HECKLER, Secretary of Health and Human Services, Appellant.

United States Court of Appeals, Eighth Circuit.

Decided July 24, 1985.

Rehearing Denied October 25, 1985.

Attorney(s) appearing for the Case

Barbara C. Biddle, Dept. of Justice, Washington, D.C., for appellant.

Myra C. Selby and Geoffrey Segar, Indianapolis, Ind., for appellees.

Before ARNOLD and FAGG, Circuit Judges, and HARPER, Senior District Judge.

ARNOLD, Circuit Judge.

In 1979 the Secretary of Health, Education, and Welfare1 issued a new regulation for reimbursing Medicare health providers for the portion of malpractice insurance premiums which is attributable to Medicare patients (codified at 42 C.F.R. § 405.452(b)(1)(ii)(1982)). This regulation, commonly referred to as the Malpractice Rule, reimburses malpractice premiums based on the ratio of Medicare malpractice claims...

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