Medicare DSH Issue Headed Back to PRRB: District Judge Rules on Allina

On September 27, 2024, Judge Loren L. Alikhan of the District Court for the District of Columbia denied Allina Health System, et al., the Plaintiffs in their Medicare DSH related case ("CASE") vs. Xavier Becerra the Defendant serving in capacity as Secretary of Health and Human Services.

Judge Alikhan granted the Defendants motion to dismiss confirming a lack of jurisdiction of the District Court. The Hospitals must therefore pursue their challenge to the 2023 Final Part C Rule which an example of Retroactive Rule making starting with administrative remedies. This will mean starting back at the Provider Reimbursement Review Board (PRRB).

The Judge also denied the Plaintiffs motion to compel the administrative record due to simple lack of jurisdiction. The hospitals argued that there will be no substantive review at the PRRB because the retroactive rule making leaves the Medicare DSH formula and methods the same as was previously litigated during the Allina I and Allina II cases of the past.

On September 23, 2024, GDS blogged about Shannon Medical Center et al v. Becerra which is another case about the Part C Final Rule before this same District of Columbia Court. That case was filed September 9, 2024, and is awaiting a ruling.

If you have questions regarding Medicare DSH, please contact Adam Blackwell at adamblackwell@govdataservices.com

The CASE can be found here.