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Appeals Court Ruling Permits "Disproportionate Share Payment" Reopenings and Authorizes "Mandamus" Review of Medicare Action

Client Alert | 1 min read | 07.28.01

In an important pro-hospital ruling secured by Crowell & Moring partner Bob Roth, the United States Court of Appeals for the D.C. Circuit has required CMS to permit the plaintiff hospitals to reopen Medicare cost reports to effectuate the disproportionate share hospital ("DSH") policy change. On July 27, 2001, the Court decided Monmouth Medical Center v. Thompson. The Court overturned the part of Ruling 97-2 that barred hospitals from reopening cost reports to recalculate the DSH payment in accordance with the new methodology in the 97-2 ruling. Also important for its implications for future efforts to secure judicial review of Medicare agency action, the Court reversed the lower court's dismissal of the case for lack of subject matter jurisdiction, finding that the lower court should have exercised mandamus jurisdiction to order the relief sought.

The Monmouth decision may be helpful for other hospitals, particularly those with potential claims relating to Notices of Program Reimbursement issued on or after February 27, 1994. Hospitals that qualify for relief under this decision may be able to proceed directly to court in the District of Columbia without having to exhaust administrative remedies. It is not yet clear what, if any, further appellate review the government might seek.

Insights

Client Alert | 8 min read | 04.17.26

CMS Finalizes CY 2027 Medicare Advantage and Part D Rule: Key Implications for Plan Sponsors

On April 6, 2026, the Centers for Medicare & Medicaid Services (CMS) published its final rule governing the Medicare Advantage (Part C) and Prescription Drug Benefit (Part D) programs for Contract Year (CY) 2027. The final rule is effective June 1, 2026, with most provisions applicable to coverage beginning January 1, 2027, and marketing and communications changes taking effect October 1, 2026. Beyond payment, the rule pursues a broad deregulatory agenda aligned with Executive Order 14192, reversing marketing and enrollment safeguards introduced in 2023 and easing documentation and reporting obligations, while introducing new program integrity requirements....