Maryland Gen. Hosp., Inc. v. Thompson,

Maryland Gen. Hosp., Inc. v. Thompson
No. WMN-00-221 (D. Md. June 27, 2001)

Stripping a hospital’s skilled nursing facility of its "new provider"
status, HCFA reversed the decision of the Provider Reimbursement Review Board
and ruled that new provider status exception is appropriate only when a facility
moves to a new patient population. The hospital sued the HHS for reinstatement
of its new provider status. The United States District Court for the District
of Maryland granted a summary judgment in favor of the HHS. According to the
court, because the Secretary of Health and Human Services’ interpretation of
the new provider exemption was not arbitrary, inconsistent or unreasonable,
the District Court of Maryland sided with the Secretary’s determination that
new provider status was not appropriate.