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ABBEVILLE GENERAL HOSP. v. RAMSEY

No. 92-3995.

3 F.3d 797 (1993)

ABBEVILLE GENERAL HOSPITAL, et al., Plaintiffs-Appellants, v. David L. RAMSEY, Secretary, Department of Health and Hospitals, et al., Defendants-Appellees.

United States Court of Appeals, Fifth Circuit.

As Amended on Denial of Rehearing November 26, 1993.

Attorney(s) appearing for the Case

Normand F. Pizza, Nyda Brook Zelenka, Samson Livingstone Sempasa, Michael Allyn Stroud, Fred J. Cassibry, Brook, Morial, Cassibry, Pizza & Adcock, et al., New Orleans, LA, for plaintiffs-appellants.

S. William Livingston, Jr., Mark Elliott Plotkin, Covington & Burling, Washington, DC, P. Bruce Waters, TA Dept. of Health & Hospitals, Jerry L. Phillips, Mary Dozier O'Brien, Baton Rouge, LA, for defendants-appellees.

Before EMILIO M. GARZA and DeMOSS, Circuit Judges and Zagel, District Judge.

ZAGEL, District Judge.

A penny saved is a penny earned. That is the formula for federal Medicaid law — hospitals that save dollars by operating efficiently and economically earn state and federal dollars to cover all operating costs. The Medicaid Act,2 specifically the Boren Amendment, provides that hospitals in participating states that operate "efficiently and economically" are entitled to reimbursement of costs which must be...

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