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TRANSITIONAL HOSPITALS CORP. v. SHALALA

No. 99-5166.

222 F.3d 1019 (2000)

TRANSITIONAL HOSPITALS CORPORATION OF LOUISIANA, INCORPORATED, and Transitional Hospitals Corporation of Texas, Incorporated, Appellees, v. Donna E. SHALALA, Secretary, Department of Health and Human Services, Appellant.

United States Court of Appeals, District of Columbia Circuit.

Decided August 22, 2000.

Attorney(s) appearing for the Case

Anne M. Murphy, Attorney, U.S. Department of Justice, argued the cause for appellant. With her on the brief were David W. Ogden, Acting Assistant Attorney General, Anthony J. Steinmeyer, Assistant Director, and Wilma A. Lewis, U.S. Attorney.

Eugene Tillman argued the cause for appellees. With him on the brief was Tamara V. Scoville.

Before: WILLIAMS, ROGERS, and GARLAND, Circuit Judges.

Opinion for the Court filed by Circuit Judge GARLAND.

GARLAND, Circuit Judge:

The Medicare program reimburses certain categories of hospitals on a "reasonable cost" basis, rather than under the generally applicable, and less remunerative, "Prospective Payment System." Long-term care hospitals are one such category. Plaintiffs own two new facilities for which they sought classification as longterm care hospitals before they began admitting patients. The Department...

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