On May 27, the Fourth Circuit Court of Appeals granted the Department of Health and Human Services’ (HHS’) request to halt litigation challenging the prior administration’s disapproval of South Carolina state plan amendments. The Biden administration asserted the amendments were financed with impermissible provider-related donations instead of intergovernmental transfers (IGTs). HHS asked the court to voluntarily remand the case back to CMS to allow the new administrator to review and reconsider the agency determination. South Carolina, the plaintiff in the case, did not oppose the motion.
America’s Essential Hospitals led four national and state hospital associations in filing an amicus brief, arguing that the prior administration’s conclusion that IGTs may be derived only from taxes or appropriations is unsupported by law and the legislative history. It also is inconsistent with long-standing and current agency practice under which public providers routinely finance IGTs from patient care revenues and other sources. The new CMS administrator now has an opportunity to fully consider these arguments and those made by other amici and the plaintiff, South Carolina.
Contact Director of Policy Rob Nelb, MPH, at rnelb@essentialhospitals.org or 202.585.0127 with questions.
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