CUMBERLAND MEDICAL CENTER v. SECRETARY OF HEALTH AND HUMAN SERVICES

Nos. 83-5546, 83-5579, 84-1146 and 84-1188.

781 F.2d 536 (1986)

CUMBERLAND MEDICAL CENTER; Smith County Memorial Hospital; Maury County Hospital; Middle Tennessee Medical Center; Southern Hills Hospital; Vanderbilt University Hospital; Athens Community Hospital; Bedford County General Hospital; Benton County General Hospital; Bristol Memorial Hospital; Chamberlain Memorial Hospital; Johnson County Memorial Hospital; Kingsport Hospital; McNairy County General Hospital; U.T. Memorial Hospital and Woods Memorial Hospital, Plaintiffs-Appellants (83-5546/5579), v. SECRETARY OF HEALTH AND HUMAN SERVICES; Carolyne K. Davis, Administrator, Health Care Financing Administration, Defendants-Appellees (83-5546/5579). CHELSEA COMMUNITY HOSPITAL; Metropolitan Hospital of Detroit; Oakwood Hospital; Sinai Hospital of Detroit; Holy Cross Hospital; Cottage Hospital; Detroit Osteopathic Hospital; Botsford General Hospital; Riverside Osteopathic Hospital; Bi-County Hospital; Mt. Clemens General Hospital; Metropolitan West Hospital; Alpena General Hospital; and Mt. Carmel Mercy Hospital, Plaintiffs-Appellees (84-1146/1188), v. Margaret M. HECKLER, Secretary of Health and Human Services, and Carolyne K. Davis, Administrator, Health Care Financing Administration, Defendants-Appellants (84-1146/1188).

United States Court of Appeals, Sixth Circuit.

Decided January 15, 1986.


Attorney(s) appearing for the Case

Robert A. Klein (argued), Weissburg & Aronson, Inc., Los Angeles, Cal., Dale C. Allen, Lockridge & Becker, Knoxville, Tenn., Richard Lee Brown, Tennessee Hosp. Ass'n, Nashville, Tenn., for Cumberland Medical Center, et al.

William G. Christopher, Chris E. Rossman, Margaret A. Shannon, David E. Hinger (argued), Honigman, Miller, Schwartz & Cohn, Detroit, Mich., for Chelsea Community Hosp., et al.

John W. Gill, J. Michael Hayes, U.S. Attys., Knoxville, Tenn., Joe B. Brown, Wendy Hildreth, U.S. Attys., Nashville, Tenn., Joel M. Spere, L. Michael Wicks, U.S. Attys., Detroit, Mich., Jeanne Schulte Scott, Dennis S. Diaz, Dept. of Health & Human Services, Anthony J. Steinmeyer, Katherine S. Gruenheck (argued), Dept. of Justice, Civ. Div., Barbara C. Biddle, Washington, D.C., for Secretary of Health and Human Services, et al.

Before: JONES and CONTIE, Circuit Judges; and JOHNSTONE, District Court Judge.


NATHANIEL R. JONES, Circuit Judge.

The cases consolidated for disposition by this opinion represent some of the last glowing embers of a hotly controversial Medicare regulation whose validity has been all but extinguished by appeals before most of the other federal circuit courts of the nation. The regulation, known as the Malpractice Rule, 42 C.F.R. § 405.452(a)(1)(ii) (1984), has been set aside by all of the courts of appeals that have considered it on the...

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