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BEDFORD CTY. MEM. HOSP. v. HEALTH & HUM. SERVICES

Nos. 84-1672, 84-1757.

769 F.2d 1017 (1985)

BEDFORD COUNTY MEMORIAL HOSPITAL; Buchanan General Hospital; Community Hospital of Roanoke Valley; Franklin Memorial Hospital; Giles Memorial Hospital; Johnston Memorial Hospital; King's Daughters' Hospital; Lee County Community Hospital; Lonesome Pine Hospital; Lynchburg General-Marshall Lodge Hospital; Memorial Hospital; Memorial Hospital of Martinsville & Henry County; Page Memorial Hospital; R.J. Reynolds-Patrick County Memorial Hospital; Roanoke Memorial Hospital; Russell County Health Facilities; Shenandoah County Memorial Hospital; Smyth County Community Hospital; Southampton Memorial Hospital; Stonewall Jackson Hospital, Inc.; Tazewell Community Hospital; Twin County Community Hospital; Virginia Baptist Hospital; Waynesboro Community Hospital; Wythe County Community Hospital; and Wytheville Hospital Corporation, Appellees, v. HEALTH AND HUMAN SERVICES, Appellant. ALEXANDRIA HOSPITAL; Chesapeake General Hospital; Culpeper Memorial Hospital, Inc.; The Fauquier Hospital; General Hospital of Virginia Beach; Greensville Memorial Hospital; Hampton General Hospital; Loudoun Memorial Hospital; Louise Obici Memorial Hospital; Mary Immaculate Hospital; Mary Washington Hospital; National Hospital for Orthopaedic; Norfolk Community Hospital; Northampton-Accomack Memorial; Portsmouth General Hospital; Potomac Hospital; Prince William Hospital; Richmond Community Hospital; Richmond Memorial Hospital; St. Mary's Hospital of Richmond, Inc.; Southside Community Hospital; Tidewater Memorial Hospital; Whittaker Memorial Hospital; Williamsburg Community Hospital, Appellees, v. Margaret M. HECKLER, Secretary of Health and Human Services, Appellant.

United States Court of Appeals, Fourth Circuit.

Decided August 14, 1985.

Rehearing Denied October 22, 1985.

Attorney(s) appearing for the Case

Robert V. Zener, Washington, D.C. (Richard K. Willard, Acting Asst. Atty. Gen., Washington, D.C., Elsie L. Munsell, U.S. Atty., Alexandria, Va., John P. Alderman, U.S. Atty., Roanoke, Va., Anthony J. Steinmeyer, Washington, D.C., on brief) for respondent.

Margaret M. Manning, Baltimore, Md. (George R. Hodges; Moore, Van Allen, Allen & Thigpen, Charlotte, N.C., Preston H. Callison, Callison, Tighe, Rush, Robinson & Anastasion, Columbia, S.C., Leonard C. Homer, Carel T. Hedlund, Ober, Kaler, Grimes & Shriver, Baltimore, Md., on brief), for petitioner.

Before RUSSELL, WIDENER and PHILLIPS, Circuit Judges.

JAMES DICKSON PHILLIPS, Circuit Judge:

In these consolidated appeals, the Secretary of Health and Human Services (Secretary) challenges the judgment of two district courts which independently, on the complaints of two sets of hospitals, declared invalid a new regulation, 42 C.F.R. § 405.452(a)(1)(ii) (1984), promulgated by the Secretary that changed the process by which hospitals are compensated for the portion of their malpractice costs attributable to Medicare...

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