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HEALTHEAST BETHESDA LUTHERAN HOSP. v. SHALALA

No. 97-4389.

164 F.3d 415 (1998)

HEALTHEAST BETHESDA LUTHERAN HOSPITAL AND REHABILITATION CENTER, A Minnesota Nonprofit Corporation, Appellee, v. Donna E. SHALALA, Secretary of Health and Human Services, Appellant.

United States Court of Appeals, Eighth Circuit.

Decided December 23, 1998.

Attorney(s) appearing for the Case

Anne M. Lobell U.S. Department of Justice, argued (Scott R. McIntosh, on the brief), for Appellant.

Donald S. Franke, Minneapolis, MN, argued, for Appellee.

Before BEAM, MAGILL, and MORRIS SHEPPARD ARNOLD, Circuit Judges.

MORRIS SHEPPARD ARNOLD, Circuit Judge.

The Medicare program reimburses hospitals for interest payments on "necessary" loans to the extent that such payments exceed income on the hospitals' investments. See 42 C.F.R. § 413.153(a)(1). When deciding how much to reimburse a hospital for a particular year, therefore, the Department of Health and Human Services must determine whether a loan is necessary and what the hospital's investment income is. Each year...

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