Bethesda Hospital Assn. v. Bowen

PETITIONER: Bethesda Hospital Assn.
RESPONDENT: Bowen
LOCATION: Hustler Magazine Headquarters

DOCKET NO.: 86-1764
DECIDED BY: Rehnquist Court (1988-1990)
LOWER COURT:

CITATION: 485 US 399 (1988)
ARGUED: Feb 29, 1988
DECIDED: Apr 04, 1988

Facts of the case

Question

Media for Bethesda Hospital Assn. v. Bowen

Audio Transcription for Oral Argument - February 29, 1988 in Bethesda Hospital Assn. v. Bowen

Audio Transcription for Opinion Announcement - April 04, 1988 in Bethesda Hospital Assn. v. Bowen

William H. Rehnquist:

The opinion of the Court in Number 86-1764, Bethesda Hospital Association versus Bowen will be announced by Justice Kennedy.

Anthony M. Kennedy:

This case presents a statutory construction issue under the Medicare Act.

The Courts of Appeals were divided and we issued certiorari to the Court of Appeals for the Six Circuit to resolve the point.

Two providers under the Medicare would like to challenge the validity of a regulation in the United States District Court.

Providers contended that certain cost were reimbursable.

00:34 prohibiting reimbursement was in valid.

In the District Court, the Secretary argued that the providers were barred from making a challenge because they had not raised the issue in the cost report that they had filed with the fiscal intermediary the cost report is the first step in the reimbursement process.

Construing the statute, we find that the provider is not barred in the District Court.

The structure of the statute permits the provider to challenge a regulation if the issue is raised at the Provider Review Board level after the cost report has been filed with the fiscal intermediary.

This the provider did.

Accordingly, we reverse the judgment of the Court of Appeals for the Six Circuit.