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HUMANA OF AURORA, INC. v. HECKLER

No. 83-2417.

753 F.2d 1579 (1985)

HUMANA OF AURORA, INC. d/b/a Aurora Community Hospital, Plaintiff-Appellant, v. Margaret M. HECKLER, Secretary of the Department of Health and Human Services, Defendant-Appellee.

United States Court of Appeals, Tenth Circuit.

February 11, 1985.

Attorney(s) appearing for the Case

Thomas H. Brock of Casson, Calligaro & Mutryn, Washington, D.C. (Barry S. Landsberg of Casson, Calligaro & Mutryn, Washington, D.C., and John S. Castellano of Holland & Hart, Denver, Colo., with him on the brief), for plaintiff-appellant.

Robert V. Zener, Atty., Appellate Staff, Civil Div., U.S. Dept. of Justice, Washington, D.C. (Richard K. Willard, Acting Asst. Atty. Gen., U.S. Dept. of Justice, Washington, D.C., Robert N. Miller, U.S. Atty., Denver, Colo., and Anthony J. Steinmeyer, Atty., Appellate Staff, Civil Division, U.S. Dept. of Justice, Washington, D.C., with him on the brief), for defendant-appellee.

Before SEYMOUR, BREITENSTEIN and SETH, Circuit Judges.

SETH, Circuit Judge.

This appeal presents a challenge to the "Malpractice Rule," a regulation promulgated in 1979 by the Department of Health and Human Services. 42 C.F.R. § 405.452(b)(1)(ii). The rule is a substantial departure from the reimbursement methods previously used to compensate hospitals for care of Medicare patients. With the large increase in malpractice insurance costs, the Department had become convinced that hospitals were overpaid by Medicare...

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