In August, the United States Court of Appeals for the District of Columbia Circuit (D.C. Circuit) issued a decision in Children’s Hospital Association of Texas (CHAT) v. Azar, reinstating a 2017 final rule governing the treatment of Medicare and commercial payments in calculating the hospital-specific Medicaid disproportionate share hospital (DSH) funding limit. The implementation of the D.C. Circuit’s decision and the 2017 final rule now will be delayed.
The CHAT plaintiff hospitals have filed a petition for rehearing, asserting that the D.C. Circuit’s decision was legally erroneous. The D.C. Circuit now must decide whether to grant a rehearing. While rare, rehearings may be granted, if necessary, to ensure the uniformity of the court’s decisions or to address a question of exceptional importance. America’s Essential Hospitals will closely follow developments in the CHAT case.
Contact Senior Director of Policy Erin O’Malley at eomalley@essentialhospitals.org or 202.585.0127 with questions.
This article was prepared for America’s Essential Hospitals by Eyman Associates and does not constitute legal advice.
