Bloomberg Law
May 26, 2020, 8:32 PM

Hospitals Denied Remedy for ‘Two-Midnight’ Medicare Rate Cut

Mary Anne Pazanowski
Mary Anne Pazanowski
Legal Reporter

A group of hospitals that received lower Medicare reimbursements due to a 0.2% rate reduction HHS implemented, then abandoned, aren’t entitled to additional payments, a federal appeals court in the District of Columbia said Tuesday.

The Health and Human Services Department doesn’t need to vacate the rate reduction rule and recalculate the hospitals’ reimbursements after it determined that information it considered when adopting the reduction was insufficient, the U.S. Court of Appeals for the District of Columbia Circuit said.

The agency’s decision to eliminate the rate reduction prospectively and increase Medicare inpatient rates by 0.6% beginning in fiscal year 2017 ...