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HARDY WILSON MEMORIAL HOSP. v. SEBELIUS

No. 09-60312.

616 F.3d 449 (2010)

HARDY WILSON MEMORIAL HOSPITAL; Sharkey-Issaquena Community Hospital; Alliance Healthcare Systems, Inc.; Jefferson County Hospital; Claiborne County Hospital, Plaintiffs-Appellants, v. Kathleen SEBELIUS, Secretary, Department of Health & Human Services, In her official capacity as Secretary of the United States Department of Health and Human Services; Charlene Frizzera, In her official capacity as Acting Administrator of the Centers for Medicare and Medicaid Services, Defendants-Appellees.

United States Court of Appeals, Fifth Circuit.

August 19, 2010.

Attorney(s) appearing for the Case

Thomas L. Kirkland, Jr., Andy Lowry (argued), Copeland, Cook, Taylor & Bush, P.A., Ridgeland, MS, for Plaintiffs-Appellants.

Matthew David Burton (argued), Dept. of State, Office of legal Asviser, James C. Luh, Dept. of Justice, Michael S. Raab, Dept. of Justice, Civ. div., Appellate Staff, Washington, DC, for Defendants-Appellees.

Jonathan Paul Neustadter, Hooper, Lundy & Bookman, Inc., Los Angeles, CA, for Amici Curiae.

Before SMITH, GARZA and CLEMENT, Circuit Judges.

EMILIO M. GARZA, Circuit Judge:

Appellants, five acute-care hospitals ("Providers"), sued the Secretary of the Department of Health and Human Services ("HHS") and the Centers for Medicare and Medicaid Services ("CMS"), alleging that CMS's method for calculating reimbursement payments for costs incurred by Providers' psychiatric units between 2003 and 2005 violated 42 U.S.C. § 1395ww(b)(3)(A) and was inconsistent with the agency's own regulations. The district...

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