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 | 3 min read | 08.03.26
On July 20, 2026, New Jersey Governor Mikie Sherrill signed the Forbidding the Algorithmic Inflation of Rent (FAIR) Act into law, making New Jersey the fourth state to regulate algorithmic rent-setting practices. Three days later, on July 23, 2026, Governor Sherrill signed the Fair Price Protection Act, which targets “surveillance pricing”—the practice of using or collecting personal data about a user and using an algorithm or artificial intelligence to charge different consumers different prices for the same products. Together, these laws represent a significant expansion of New Jersey's consumer protection framework in the algorithmic pricing context.
Client Alert | 2 min read | 08.03.26
New York Becomes First State to Restrict Addictive Social Media Features for Minors
Client Alert | 4 min read | 08.03.26
Client Alert | 6 min read | 08.03.26
The Pipe, Not the Posts: How Section 230’s Protections Extend to Generative AI Platforms
