The U.S. Department of Health and Human Services (HHS) asked a D.C. federal court on Thursday to dismiss a lawsuit filed by a group of hospitals challenging Medicare payment determinations for low-income patients. On the same day, the court rejected the hospitals’ request to extend the stay on the case.
HHS Argues Premature Filing and Lack of Jurisdiction
HHS’s motion to dismiss contends that the court lacks jurisdiction over the claims brought by the hospitals, led by Tarzana Providence Health System, as the lawsuit was filed prematurely. The hospitals, according to HHS, failed to exhaust their remedies through the agency’s review process before turning to the courts.
“This court lacks jurisdiction to consider these challenges because plaintiffs filed this action prematurely, without exhausting their administrative remedies under the Medicare statute,” the HHS motion stated. The agency further noted that recent decisions by the U.S. Supreme Court and the D.C. Circuit have already resolved the legal issues raised in the hospitals’ claims.
HHS Hospital Payment Rule Suit : Dispute Over DSH Payment Calculations
The lawsuit, originally filed in May 2022, targets the complex calculations involved in determining Disproportionate Share Hospital (DSH) payments. These payments are crucial for hospitals serving a high number of low-income patients.
