Kyle T. Edwards , Attorney, U.S. Department of Justice, Civil Division ( Abby C. Wright , Attorney, U.S. Department of Justice, Civil Division; Brian M. Boynton , Acting Assistant Attorney General; Clinton J. Johnson , Acting United States Attorney; Daniel J. Barry , of Counsel, Acting General Counsel, U.S. Department of Health and Human Services; Janice L. Hoffman , of Counsel, Associate General Counsel, U.S. Department of Health and Human Services; Susan Maxson Lyons , of Counsel, Deputy Associate General Counsel for Litigation, U.S. Department of Health and Human Services; Jonathan C. Brumer , of Counsel, Attorney, Department of Health and Human Services, with her on the briefs), Washington, D.C., for Defendant-Appellee.
Before HOLMES, BALDOCK, and BACHARACH, Circuit Judges.
BACHARACH, Circuit Judge.
In this appeal, three teaching hospitals1 challenge the denial of Medicare reimbursements. These hospitals had shared the cost to train residents off-site (at places like community clinics). At that time, a teaching hospital could obtain reimbursement only by incurring "substantially all" of...
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