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Hospitals Lose Bid for Attorneys’ Fees in Medicare Bad Debt Case

June 26, 2020, 6:17 PM

Seventy-five long-term hospitals that won a lawsuit in which they sought over $20 million in payments from the Centers for Medicare and Medicaid Services may not recover over $1.3 million in attorneys’ fees and litigation costs, a federal court in the District of Columbia said.

The Select Medical Corp. hospitals didn’t show CMS acted in bad faith before or during the litigation over their right to collect money to reimburse them for Medicare patients’ bad debts, the U.S. District Court for the District of Columbia said Thursday.

Additionally, CMS’ position in defending the policy challenged by the hospitals was substantially ...