NORTHPORT HEALTH SERV. v. DEPT. OF HEALTH & HUMAN

No. 20-1799.

14 F.4th 856 (2021)

NORTHPORT HEALTH SERVICES OF ARKANSAS, LLC, doing business as Springdale Health and Rehabilitation Center; NWA Nursing Center, LLC, doing business as The Maples; Ashland Place Health and Rehabilitation, LLC; Aspire Physical Recovery Center at Cahaba River, LLC; Aspire Physical Recovery Center at Hoover, LLC; Aspire Physical Recovery Center of West Alabama, LLC; Athens Health and Rehabilitation, LLC; Civic Center Health and Rehabilitation, LLC; Columbiana Health and Rehabilitation, LLC; Cordova Health and Rehabilitation, LLC; Crossville Health and Rehabilitation, LLC; Florala Health and Rehabilitation, LLC; Georgiana Health and Rehabilitation, LLC; Gulf Coast Health and Rehabilitation, LLC; Hunter Creek Health and Rehabilitation, LLC; Huntsville Health and Rehabilitation, LLC; Jacksonville Health and Rehabilitation, LLC; Legacy Health and Rehabilitation of Pleasant Grove, LLC; Lineville Health and Rehabilitation, LLC; Luverne Health and Rehabilitation, LLC; Moundville Health and Rehabilitation, LLC; Northport Health Services of Arkansas, LLC, doing business as Covington Court Health and Rehabilitation Center, doing business as Fayetteville Health and Rehabilitation Center, doing business as Springdale Health and Rehabilitation Center, doing business as Legacy Health and Rehabilitation Center, doing business as Paris Health and Rehabilitation Center; Northport Health Services of Florida, LLC, doing business as Crystal River Health and Rehabilitation Center, doing business as Ocala River Health and Rehabilitation Center, doing business as Daytona Beach Health and Rehabilitation Center, doing business as St. Augustine Health and Rehabilitation Center, doing business as West Melbourne Health and Rehabilitation Center; Northport Health Services of Missouri, LLC, doing business as Joplin Health and Rehabilitation Center, doing business as Webb City Health and Rehabilitation Center, doing business as Carthage Health and Rehabilitation Center, doing business as Warsaw Health and Rehabilitation Center, doing business as Pleasant Hill Health and Rehabilitation Center; Northway Health & Rehabilitation, LLC; Oak Knoll Health and Rehabilitation, LLC; Opp Health and Rehabilitation, LLC; Ozark Health and Rehabilitation, LLC; Palm Gardens Health and Rehabilitation, LLC; Park Manor Health and Rehabilitation, LLC; Prattville Health and Rehabilitation, LLC; South Haven Health and Rehabilitation, LLC; South Health and Rehabilitation, LLC; Sumter Health and Rehabilitation, LLC; Tallassee Health and Rehabilitation, LLC; Valley View Health and Rehabilitation, LLC; Wetumpka Health and Rehabilitation, LLC; AFNC, Inc., doing business as Eaglecrest Nursing and Rehab; Beebe Retirement Center, Inc.; BNNC, Inc., doing business as Alcoa Pines Health and Rehabilitation; BVNC, Inc., doing business as Alcoa Pines Health and Rehabilitation; CNNC, Inc., doing business as Corning Therapy and Living Center; FPNC, Inc., doing business as Twin Lakes Therapy and Living; GVNC, Inc., doing business as Gassville Therapy and Living; HBNC, Inc., doing business as Southridge Village Nursing and Rehab; HLNC, Inc., doing business as Heritage Living Center; HSNC, Inc., doing business as Village Springs Health and Rehabilitation; JBNC, Inc., doing business as Ridgecrest Health and Rehabilitation; Jonesboro Care and Rehabilitation Center, LLC, doing business as St. Elizabeths Place; JRNRC OPS, Inc., doing business as James River Nursing and Rehabilitation; Linco Health, Inc., doing business as Gardner Nursing and Rehabilitation; MHCNC, Inc., doing business as Care Manor Nursing and Rehab; MLBNC, Inc., doing business as Pioneer Therapy and Living; MMNC, Inc., doing business as The Lakes at Maumelle Health and Rehabilitation; MSNRC OPS, Inc., doing business as Magnolia Square Nursing and Rehab; Nashville Nursing & Rehab, Inc.; Northwest Health and Rehab, Inc., doing business as North Hills Life Care and Rehab; OCNC, Inc., doing business as Silver Oaks Health and Rehabilitation; OR OPS, Inc., doing business as Oak Ridge Health and Rehabilitation; PM OPS, Inc., doing business as Dierks Health and Rehab; RTNC, Inc., doing business as Rector Nursing and Rehab; Salco NC, Inc., doing business as Evergreen Living Center at Stagecoach; Salco NC 2, Inc., doing business as Amberwood Health and Rehabilitation; SCNC, Inc., doing business as Spring Creek Health & Rehab; Senior Living Management Group, LLC, doing business as Birch Pointe Health and Rehabilitation; SLNC, Inc., doing business as Southfork River Therapy and Living; SRCNC, Inc., doing business as The Crossing at Riverside Health and Rehabilitation; Timberlane Care and Rehabilitation Center, LLC, doing business as Timberlane Health & Rehabilitation; TXKNC, Inc., doing business as Bailey Creek Health & Rehab; WCNC, Inc., doing business as Katherines Place at Wedington; Westwood Health and Rehab, Inc.; Windcrest Health and Rehab, Inc.; WRNC, Inc., doing business as Chapel Woods Health and Rehabilitation; Apple Creek Health and Rehab, LLC; Ashton Place Health and Rehab, LLC; Atkins Care Center, Inc.; Belvedere Nursing and Rehabilitation Center, LLC; Bradford House Nursing and Rehab, LLC; Briarwood Nursing and Rehabilitation Center, Inc.; Cabot Health and Rehab, LLC; Chapel Ridge Nursing Center, LLC; Colonel Glenn Health and Rehab, LLC; Dardanelle Nursing and Rehabilitation Center, Inc.; Nursing and Rehabilitation Center at Good Shepherd, LLC; Greenbrier Care Center, Inc.; Greystone Nursing and Rehab, LLC; Heather Manor Care Center, Inc.; Hickory Heights Health and Rehab, LLC; Innisfree Health and Rehab, LLC; Jamestown Nursing and Rehab, LLC; Johnson County Health and Rehab, LLC; Country Club Gardens, LLC; Lakewood Health and Rehab, LLC; Legacy Heights Nursing and Rehab, LLC; Lonoke Health and Rehab Center, LLC; Oak Manor Nursing and Rehabilitation Center, Inc.; Perry County Care Center, Inc.; Quapaw Care and Rehabilitation Center, LLC; Robinson Nursing & Rehabilitation Center, LLC; Russellville Car Center, Inc.; Salem Place Nursing and Rehabilitation Center, Inc.; Sherwood Nursing and Rehabilitation Center, Inc.; Shiloh Nursing and Rehab, LLC; Stella Manor Care Center, Inc.; Superior Health & Rehab, LLC; Eufaula Care Center, Inc.; Cherokee County Nursing Center, Inc.; Parks Edge Care Center, Inc.; Hendrix Health Care Center, Inc., doing business as Hendrix Health & Rehabilitation; Glen Haven Health and Rehabilitation, LLC, Plaintiffs-Appellants v. U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES; Xavier Becerra, in his official capacity as Secretary of the U.S. Department of Health & Human Services; Centers for Medicare & Medicaid Services; Chiquita Brooks-LaSure, in her official capacity as the Administrator of the Centers for Medicare & Medicaid Services, Defendants-Appellees Public Citizen, Amicus on Behalf of Appellee(s).

United States Court of Appeals, Eighth Circuit.

Filed: October 1, 2021.


Attorney(s) appearing for the Case

Paul D. Clement , Kasdin Miller Mitchell , Erin Murphy , Kirkland & Ellis, Washington, DC, Kirkman T. Dougherty , Hardin & Jesson, Fort Smith, AR, for Plaintiff-Appellant Northport Health Services of Arkansas, LLC, doing business as Springdale Health and Rehabilitation Center.

Paul D. Clement , Kasdin Miller Mitchell , Erin Murphy , Andrew C. Lawrence , Kirkland & Ellis, Washington, DC, Kirkman T. Dougherty , Hardin & Jesson, Fort Smith, AR, for Plaintiffs-Appellants NWA Nursing Center, LLC, doing business as The Maples, Ashland Place Health and Rehabilitation, LLC, Aspire Physical Recovery Center at Cahaba River, LLC, Aspire Physical Recovery Center at Hoover, LLC, Aspire Physical Recovery Center of West Alabama, LLC, Athens Health and Rehabilitation, LLC, Civic Center Health and Rehabilitation, LLC, Columbiana Health and Rehabilitation, LLC, Cordova Health and Rehabilitation, LLC, Crossville Health and Rehabilitation, LLC, Florala Health and Rehabilitation, LLC, Georgiana Health and Rehabilitation, LLC, Gulf Coast Health and Rehabilitation, LLC, Hunter Creek Health and Rehabilitation, LLC, Huntsville Health and Rehabilitation, LLC, Jacksonville Health and Rehabilitation, LLC, Legacy Health and Rehabilitation of Pleasant Grove, LLC, Lineville Health and Rehabilitation, LLC, Luverne Health and Rehabilitation, LLC, Moundville Health and Rehabilitation, LLC, Northport Health Services of Arkansas; LLC, doing business as Covington Court Health and Rehabilitation Center, doing business as Fayetteville Health and Rehabilitation Center, doing business as Springdale Health and Rehabilitation Center, doing business as Legacy Health and Rehabilitation Center, doing business as Paris Health and Rehabilitation Center, Northport Health Services of Florida, LLC, doing business as Crystal River Health and Rehabilitation Center, doing business as Ocala River Health and Rehabilitation Center, doing business as Daytona Beach Health and Rehabilitation Center, doing business as St. Augustine Health and Rehabilitation Center, doing business as West Melbourne Health and Rehabilitation Center, Northport Health Services of Missouri, LLC, doing business as Joplin Health and Rehabilitation Center, doing business as Webb City Health and Rehabilitation Center, doing business as Carthage Health and Rehabilitation Center, doing business as Warsaw Health and Rehabilitation Center, doing business as Pleasant Hill Health and Rehabilitation Center, Northway Health & Rehabilitation, LLC, Oak Knoll Health and Rehabilitation, LLC, Opp Health and Rehabilitation, LLC, Ozark Health and Rehabilitation, LLC, Palm Gardens Health and Rehabilitation, LLC, Park Manor Health and Rehabilitation, LLC, Prattville Health and Rehabilitation, LLC, South Haven Health and Rehabilitation, LLC, South Health and Rehabilitation, LLC, Sumter Health and Rehabilitation, LLC, Tallassee Health and Rehabilitation, LLC, Valley View Health and Rehabilitation, LLC, Wetumpka Health and Rehabilitation, LLC, AFNC, Inc., doing business as Eaglecrest Nursing and Rehab, Beebe Retirement Center, Inc., BNNC, Inc., doing business as Alcoa Pines Health and Rehabilitation, BNNC, Inc., doing business as Alcoa Pines Health and Rehabilitation, CNNC, Inc., doing business as Corning Therapy and Living Center, FPNC, Inc., doing business as Twin Lakes Therapy and Living, GVNC, Inc., doing business as Gassville Therapy and Living, HBNC, Inc., doing business as Southridge Village Nursing and Rehab, HLNC, Inc., doing business as Heritage Living Center, HSNC, Inc., doing business as Village Springs Health and Rehabilitation, JBNC, Inc., doing business as Ridgecrest Health and Rehabilitation, Jonesboro Care and Rehabilitation Center, LLC, doing business as St. Elizabeths Place, JRNRC OPS, Inc., doing business as James River Nursing and Rehabilitation, Linco Health, Inc., doing business as Gardner Nursing and Rehabilitation, MHCNC, Inc., doing business as Care Manor Nursing and Rehab, MLBNC, Inc., doing business as Pioneer Therapy and Living, MMNC, Inc., doing business as The Lakes at Maumelle Health and Rehabilitation, MSNRC OPS, Inc., doing business as Magnolia Square Nursing and Rehab, Nashville Nursing & Rehab, Inc., Northwest Health and Rehab, Inc., doing business as North Hills Life Care and Rehab, OCNC, Inc., doing business as Silver Oaks Health and Rehabilitation, OR OPS, Inc., doing business as Oak Ridge Health and Rehabilitation, PM OPS, Inc., doing business as Dierks Health and Rehab, RTNC, Inc., doing business as Rector Nursing and Rehab, Salco NC, Inc., doing business as Evergreen Living Center at Stagecoach, Salco NC 2, Inc., doing business as Amberwood Health and Rehabilitation, SCNC, Inc., doing business as Spring Creek Health & Rehab, Senior Living Management Group, LLC, doing business as Birch Pointe Health and Rehabilitation, SLNC, Inc., doing business as Southfork River Therapy and Living, SRCNC, Inc., doing business as The Crossing at Riverside Health and Rehabilitation, Timberlane Care and Rehabilitation Center, LLC, doing business as Timberlane Health & Rehabilitation, TXKNC, Inc., doing business as Bailey Creek Health & Rehab, WCNC, Inc., doing business as Katherines Place at Wedington, Westwood Health and Rehab, Inc., Windcrest Health and Rehab, Inc., WRNC, Inc., doing business as Chapel Woods Health and Rehabilitation, Apple Creek Health and Rehab, LLC, Ashton Place Health and Rehab, LLC, Atkins Care Center, Inc., Belvedere Nursing and Rehabilitation Center, LLC, Bradford House Nursing and Rehab, LLC, Briarwood Nursing and Rehabilitation Center, Inc., Cabot Health and Rehab, LLC, Chapel Ridge Nursing Center, LLC, Colonel Glenn Health and Rehab, LLC, Dardanelle Nursing and Rehabilitation Center, Inc., Nursing and Rehabilitation Center at Good Shepherd, LLC, Greenbrier Care Center, Inc., Greystone Nursing and Rehab, LLC, Heather Manor Care Center, Inc., Hickory Heights Health and Rehab, LLC, Innisfree Health and Rehab, LLC, Jamestown Nursing and Rehab, LLC, Johnson County Health and Rehab, LLC, Country Club Gardens, LLC, Lakewood Health and Rehab, LLC, Legacy Heights Nursing and Rehab, LLC, Lonoke Health and Rehab Center, LLC, Oak Manor Nursing and Rehabilitation Center, Inc., Perry County Care Center, Inc., Quapaw Care and Rehabilitation Center, LLC, Robinson Nursing & Rehabilitation Center, LLC, Russellville Car Center, Inc., Salem Place Nursing and Rehabilitation Center, Inc., Sherwood Nursing and Rehabilitation Center, Inc., Shiloh Nursing and Rehab, LLC, Stella Manor Care Center, Inc., Superior Health & Rehab, LLC, Eufaula Care Center, Inc., Cherokee County Nursing Center, Inc., Parks Edge Care Center, Inc., Hendrix Health Care Center, Inc., doing business as Hendrix Health & Rehabilitation, Glen Haven Health and Rehabilitation, LLC.

Seth T. Creed , Assistant U.S. Attorney, U.S. Attorney's Office, Western District of Arkansas, Fort Smith, AR.

Dennis Fan , Alexander V. Sverdlov , U.S. Department of Justice, Civil Division, Washington, DC, Mark B. Stern , U.S. Department of Justice, Civil Division, Appellate Staff, Washington, DC, for Defendants-Appellees.

Scott Lawrence Nelson , Allison M. Zieve , Public Citizen Litigation Group, Washington, DC, for Amicus on Behalf of Appellee(s) Public Citizen.

Before SMITH, Chief Judge, KELLY and ERICKSON, Circuit Judges.


Northport Health Services of Arkansas, LLC, and other similarly situated long-term care (LTC) facilities (collectively, Northport) appeal the decision of the district court3 granting summary judgment in favor of the U.S. Department of Health and Human Services (HHS) and the Centers for Medicare...

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