Mercy Catholic Med. Ctr. v. Thompson

Medicare

Mercy Catholic Med. Ctr. v. Thompson,
No. 03-2292 (3d Cir. Aug. 18, 2004)

The United States Court of Appeals for the Third Circuit held that the Secretary
of the Department of Health and Human Services erred in failing to permit a hospital
to use time studies conducted in 1990 as evidence to correct graduate medical
education (GME) costs that were allegedly misclassified in 1985. The court found
that the Secretary’s decision to limit the use of such time studies to
correct only misclassified operating costs rather than GME costs was inconsistent
with the Department’s own regulations.