Hospitals’ Challenge to Medicare Payment Formula Tossed by Court

A challenge by two hospitals over how Medicare calculates reimbursements was properly dismissed by an administrative appeal board, a federal district court ruled.

The Medicare agency’s publication of the formula it used wasn’t a final action subject to appeal, the U.S. District Court for the District of Columbia said Friday, granting the government’s summary judgment bid on jurisdictional grounds.

The lawsuit, filed by two Indiana hospitals, concerned the way the Centers for Medicare & Medicaid Services adjusted reimbursements to provide additional support to hospitals that treat a large number of patients who are uninsured or on Medicaid.

Hospitals become eligible ...