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DOMINGUEZ VALLEY HOSP. v. SHALALA

No. 94-55182.

57 F.3d 832 (1995)

DOMINGUEZ VALLEY HOSPITAL; Ontario Community Hospital; Ojai Community Hospital; Manteca Hospital; Doctors Hospital of Lakewood; Los Alamitos Medical Center, Los Alamitos Medical Center — Psych; Chico Community Hospital; Memorial Hospital of Redding, Redding Medical Center, Redding Medical Center — Rehabilitation, Redding Medical Center — Detox; Modesto City Hospital; Garfield Medical Center — Rehabilitation; Lodi Community Hospital; Doctors Hospital — Modesto; Doctors Hospital — Modesto HHA; Doctors Hospital of Pinole; Doctors Hospital of Pinole — Detox; Indio Community Hospital; Los Altos Hospital; Doctors Hospital of Lakewood — South; Alvarado Community Hospital; Doctors Hospital of Montclair; Twin Cities Community Hospital; Palms of Pasadena Hospital; John F. Kennedy Memorial Hospital; Lake Seminole Hospital; Hollywood Medical Center; Seven Rivers Community Hospital; Medfield Center; Sierra Medical Center; Meadowcrest Hospital; St. Charles General Hospital; Rehabilitation Institute of Oklahoma; Jackson Specialty Hospital/SNF; Wilmot Psychiatric/Medicenter, Tucson; San Diego Physicians & Surgeons; Mid-South Hospital; Highland Hospital; Dallas Rehabilitation Institute; Northgate General Hospital; Community Hospital of Los Gatos; Delray Community Hospital; Forkosh Memorial Hospital; Flint Goodridge Hospital; J.E. Smith/F.E. Hebert Hospitals/SNF; Dedman Medical Center/Brookhaven/SNF; Placentia Linda Community Hospital; Carrollton Community Hospital; University Medical Center, Plaintiffs-Appellants, v. Donna E. SHALALA, Secretary of the Department of Health & Human Services, Defendant-Appellee.

United States Court of Appeals, Ninth Circuit.

Decided June 14, 1995.

Attorney(s) appearing for the Case

Patric Hooper, Hooper, Lundy & Bookman, Los Angeles, CA, for plaintiffs-appellants.

Henry A. Azar, Jr., U.S. Dept. of Justice, Washington, DC, for defendant-appellee.

Before: HALL, LEAVY, Circuit Judges, and LEVI, District Judge.

LEVI, District Judge:

Appellant hospitals appeal from a decision of the Secretary of Health and Human Services ("the Secretary") declining to reimburse the hospitals for stock options granted to certain employees. The hospitals participate in the Medicare program and seek reimbursement from the Secretary under that program. The Secretary refused reimbursement for the stock options, finding that under generally accepted accounting principles ("GAAP"),

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