On Aug. 25, a unanimous panel upheld a Northern District of Illinois ruling in The University of Chicago Medical Center v. Sebelius.

The lower court held that the medical center is eligible for Medicare reimbursements for “indirect medical education” expenses, such as research. In affirming, the 7th Circuit specifically ruled that the hospital could include the time medical residents spent on pure research in fiscal year 1996 in determining how many full-time-equivalent medical workers it employed for Medicare reimbursement purposes.