Louisiana Dep’t of Health and Hosps. v. Center for Medicare and Medicaid Servs.

Louisiana Dep’t of Health and Hosps. v. Center for Medicare
and Medicaid Servs.,
No. 02-60834 (5th Cir. Sept. 22, 2003)

CMS
determined that Rural Health Clinics (RHCs) in Louisiana do not furnish "hospital
services" and thus are not entitled to a higher disproportionate share
reimbursement rate. The United States Court of Appeals for the Fifth Circuit
held that that determination was unreasonable.

The court found that hospital-based RHCs function as part
of the hospital because the hospital employs the clinic’s personnel, pays the
clinic’s bills, performs quality assurance and credentialing for the clinic,
owns or leases the clinic location, handles payroll functions and provides medical
supplies.