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MERCY HOSP. OF LAREDO v. HECKLER

No. 84-2382.

777 F.2d 1028 (1985)

MERCY HOSPITAL OF LAREDO, et al., Plaintiffs-Appellants, v. Margaret M. HECKLER, In Her Official Capacity as Secretary of Health & Human Services, Defendant-Appellee.

United States Court of Appeals, Fifth Circuit.

December 6, 1985.

Attorney(s) appearing for the Case

Wood, Lucksinger & Epstein, Dennis M. Barry, Washington, D.C., for plaintiffs-appellants.

Daniel K. Hedges, U.S. Atty., Linda M. Cipriani, C.J. (Neil) Calnan, James R. Gough, Asst. U.S. Attys., Houston, Tex., Kermit Fonteno, Dallas, Tex., for Margaret Heckler.

Before RANDALL, JOHNSON, and GARWOOD, Circuit Judges.

GARWOOD, Circuit Judge:

Appellants, Medicare provider hospitals, brought this suit challenging the disallowance by the Secretary of Health and Human Services of their claims for reimbursement of certain claimed costs of contract physical therapy services. The district court denied relief. It determined that the derivation and the application of cost guidelines by the Secretary was neither arbitrary, capricious or an abuse...

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