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PROVIDENCE HEALTH SYSTEM-WA v. THOMPSON

No. 02-35912.

353 F.3d 661 (2003)

PROVIDENCE HEALTH SYSTEM-WASHINGTON, dba-Providence Yakima Medical Center, dba Providence Yakima Medical Center Skilled Nursing Facility; Providence Yakima Medical Center; Providence Yakima Medical Center Skilled Nursing Facility, Plaintiffs-Appellees, v. Tommy G. THOMPSON, Secretary Department of Health and Human Services, Defendant-Appellant.

United States Court of Appeals, Ninth Circuit.

Filed December 17, 2003.

Attorney(s) appearing for the Case

Robert D. McCallum, Jr., Assistant Attorney General, for the defendant-appellant.

James A. McDevitt, United States Attorney, for the defendant-appellant.

Barbara C. Biddle, Attorney, Appellate Staff, Civil Division, U.S. Department of Justice, Washington D.C., for the defendant-appellant.

Anthony A. Yang, Attorney, Appellate Staff, Civil Division, U.S. Department of Justice, Washington D.C., for the defendant-appellant.

Stephen I. Pentz, Bennett Bigelow & Leedom, P.S., Seattle, Washington, for the plaintiff-appellee.

Before: Dorothy W. NELSON, Alex KOZINSKI, and M. Margaret McKEOWN, Circuit Judges.

Argued and Submitted October 8, 2003 — Seattle, Washington.

OPINION

D.W. NELSON, Senior Circuit Judge:

The Secretary of Health and Human Services (Secretary) appeals the district court's reversal of the Secretary's decision to deny Providence Health System-Washington (Providence) a "new provider" exemption under 42 C.F.R. § 413.30(e) (1996). We hold that 42 C.F.R. § 413.30(e) is ambiguous. Because the Secretary's interpretation that...

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