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HAYS MEDICAL CENTER v. AZAR

No. 17-3232.

956 F.3d 1247 (2020)

HAYS MEDICAL CENTER; Mercy Hospital Lebanon; Mercy Hospital Ardmore, Inc.; North Platte Nebraska Hospital Corporation, d/b/a Great Plains Medical Center; Hanover Hospital, Inc.; Knox Community Hospital; Labette County Medical Center; Memorial Hospital of Sweetwater County; Newman Memorial County Hospital, d/b/a Newman Regional Health; Northwestern Medical Center, Inc.; Pocatello Hospital, LLC, d/b/a Portneuf Medical Center, Plaintiffs-Appellants, and Richland Memorial Hospital, Plaintiff, v. Alex M. AZAR, II, in his official capacity as Secretary of Health and Human Services, Defendant-Appellee.

United States Court of Appeals, Tenth Circuit.

FILED April 21, 2020.

Attorney(s) appearing for the Case

Daniel J. Hettich ( Elizabeth N. Swayne with him on the briefs), King & Spalding LLP, Washington D.C., for Plaintiffs—Appellants.

Carleen M. Zubrzycki , Attorney, Appellate Staff ( Chad A. Readler , Acting Assistant Attorney General, Stephen McAllister, United States Attorney, and Michael S. Raab and Abby Wright , Attorneys, with her on the brief), United States Department of Justice, Washington, D.C., for Defendant—Appellee.

Before TYMKOVICH, Chief Judge, HOLMES and PHILLIPS, Circuit Judges.

Plaintiff-Appellants are eleven rural hospitals (the "Hospitals"). They challenge the methodology that the U.S. Secretary of Health and Human Services (the "Secretary") uses to calculate their Medicare reimbursements. The question before us is whether that methodology is arbitrary and capricious. We hold that it is not. Accordingly...

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