Following the merger of two hospital systems, the Administrator for the Centers of Medicare and Medicaid Services denied the merged system's request for a loss payment, pursuant to 42 C.F.R. § 413.134(l), holding the merger was not a bona fide sale as required by statute; the district court agreed with these conclusions and dismissed the case on summary judgment. Statutory mergers must be bona fide sales in order to be eligible for a depreciation adjustment under §413.134(l). Substantial evidence supports the administrator's conclusion that this merger failed to constitute a bona fide sale. The district court's judgment is affirmed.
Memorial Hermann Hospital v. Sebelius
July 29, 2013