CARLE FOUNDATION HOSP. v. SHALALA

No. 95-1034.

57 F.3d 597 (1995)

CARLE FOUNDATION HOSPITAL, Plaintiff-Appellant, v. Donna E. SHALALA, Secretary of Health and Human Services, Defendant-Appellee.

United States Court of Appeals, Seventh Circuit.

Decided June 16, 1995.


Attorney(s) appearing for the Case

James M. Gaynor, Jr., McDermott, Will & Emery, Chicago, IL, Timothy P. Blanchard (argued), McDermott, Will & Emery, Los Angeles, CA, for plaintiff-appellant Carle Foundation Hosp., an Ill. not-for-profit corp.

David H. Hoff, Asst. U.S. Atty., Office of U.S. Atty., Urbana Div., Urbana, IL, Lauren S. Ruby (argued), Dept. of Health and Human Services, Region V, Office of Gen. Counsel, Chicago, IL, for defendant-appellee Donna E. Shalala, in her official capacity as Secretary of U.S. Dept. of Health and Human Services.

Before EASTERBROOK and KANNE, Circuit Judges, and SHARP, District Judge.


EASTERBROOK, Circuit Judge.

Taxpayers search the heavens for ways to convert capital investments into ordinary expenses; the latter are immediately deductible, while the former must be depreciated. The federal government offers the same inducement widely. For example, a federal contractor compensated on a cost-plus basis wants to depict as much of its outlay as possible as operating expenses. Since 1983 the Medicare program has given hospitals the opposite incentive...

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