NEW HAMPSHIRE HOSP. ASSOCIATION v. AZAR

No. 17-1615.

887 F.3d 62 (2018)

NEW HAMPSHIRE HOSPITAL ASSOCIATION; Mary Hitchcock Memorial Hospital; LRGHealthcare; Speare Memorial Hospital; Valley Regional Hospital, Inc., Plaintiffs, Appellees, v. Alex AZAR, United States Secretary of Health and Human Services; Centers for Medicare and Medicaid Services; Seema Verma, in her official capacity as Administrator, Centers for Medicare and Medicaid Services, Defendants, Appellants.

United States Court of Appeals, First Circuit.

April 4, 2018.


Attorney(s) appearing for the Case

Tara S. Morrissey , Attorney, Appellate Staff, Civil Division, U.S. Department of Justice, with whom Chad A. Readler , Acting Assistant Attorney General, Civil Division, U.S. Department of Justice, John J. Farley , Acting U.S. Attorney, Mark B. Stern , Attorney, Appellate Staff, Civil Division, U.S. Department of Justice, Heather Flick , Acting General Counsel, Centers for Medicare and Medicaid Services Division, U.S. Department of Health and Human Services, Janice L. Hoffman , Associate General Counsel, Centers for Medicare and Medicaid Services Division, U.S. Department of Health and Human Services, Susan M. Lyons , Deputy Associate General Counsel for Litigation, Centers for Medicare and Medicaid Services Division, U.S. Department of Health and Human Services, David L. Hoskins , Attorney, Office of the General Counsel, Centers for Medicare and Medicaid Services Division, U.S. Department of Health and Human Services, and Lindsay S. Goldberg , Attorney, Office of the General Counsel, Centers for Medicare and Medicaid Services Division, U.S. Department of Health and Human Services, were on brief, for appellants.

Ann M. Rice , Deputy Attorney General, Civil Bureau, State of New Hampshire, and Nancy J. Smith , Senior Assistant Attorney General, Civil Bureau, State of New Hampshire, on brief for State of New Hampshire, Department of Health and Human Services, amicus curiae.

W. Scott O'Connell , with whom Morgan C. Nighan and Nixon Peabody LLP were on brief, for appellees.

Geraldine E. Edens , Christopher H. Marraro , Baker & Hostetler LLP, Susan Feign Harris , and Morgan Lewis & Bockius LLP on brief for Children's Hospital Association, amicus curiae.

Before Kayatta, Selya, and Lipez, Circuit Judges.


When hospitals treat Medicaid patients, the Medicaid payments received from the government often do not cover the full costs of care. In 1981, Congress authorized the payment of additional sums to lessen the burden on hospitals that treat a high number of indigent patients. Years later, concerned that this payment adjustment...

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