NEW LIFECARE HOSP'S OF NORTH CAROLINA v. BECERRA

No. 20-5227.

7 F.4th 1215 (2021)

NEW LIFECARE HOSPITALS OF NORTH CAROLINA, LLC, doing business as LifeCare Hospitals of North Carolina, et al., Appellants v. Xavier BECERRA, in his official capacity as Secretary, United States Department of Health and Human Services, Appellee.

United States Court of Appeals, District of Columbia Circuit.

Decided August 10, 2021.


Attorney(s) appearing for the Case

Jason M. Healy argued the cause and filed the briefs for appellants.

Dennis Fan , Attorney, U.S. Department of Justice, argued the cause for appellee. With him on the brief were Brian M. Boynton , Acting Assistant Attorney General, and Alisa B. Klein , Attorney.

Before: Henderson, Wilkins and Walker, Circuit Judges.


Appellants are four long-term care hospitals located in North Carolina, Pennsylvania, Texas, and Louisiana. The hospitals treat patients who are dually eligible for the Medicare and Medicaid programs. In 2008, the hospitals were denied reimbursement by the Secretary of Health and Human Services for "bad debts"—i...

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