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ADIRONDACK MEDICAL CENTER v. SEBELIUS

No. 12-5366.

740 F.3d 692 (2014)

ADIRONDACK MEDICAL CENTER, et al., Appellants, Corning Hospital, et al., Appellees v. Kathleen SEBELIUS, In Her Official Capacity as Secretary of the United States Department of Health and Human Services, Appellee.

United States Court of Appeals, District of Columbia Circuit.

Decided January 24, 2014.

Attorney(s) appearing for the Case

M. Miller Baker argued the cause for appellants. With him on the briefs were Ankur J. Goel and Johnny H. Walker.

Abby C. Wright , Attorney, U.S. Department of Justice, argued the cause for appellee. With her on the brief were Stuart F. Delery , Acting Assistant Attorney General, Ronald C. Machen Jr. , U.S. Attorney, and Michael S. Raab , Attorney.

Before: ROGERS and BROWN, Circuit Judges, and WILLIAMS, Senior Circuit Judge.

BROWN, Circuit Judge.

In 2007, the Secretary of Health and Human Services revamped Medicare's Inpatient Prospective Payment System, updating the diagnostic weighting used to calculate reimbursements for hospitals treating the program's beneficiaries. As with most changes to complex systems, there were unintended consequences — namely in the form of overpayments to hospitals — but Congress had proactively attempted to counter unwarranted increases by...

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