Medicare Patients Denied Attorneys’ Fees in Status Change Row

A class of Medicare patients isn’t entitled to recover attorneys’ fees and costs in a long-running case over an HHS rule that required hospitals to review and, if necessary, change patients’ status from “in-patient” to “observation” without notifying them first.

The Health and Human Services Department’s position—that patients had no property right in their status that would entitle them to a notice and hearing concerning a change—was “substantially justified,” even though it was ultimately unsuccessful, the US District Court for the District of Connecticut said in denying the patients’ Equal Access to Justice Act motion.

Patient admissions are now governed ...