09-3429 The University of Chicago Medical Center v. Sebelius

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Public Health
Medicare; PPACA

Medicare extends to nonpatient activities when it reimburses the indirect costs of medical education.

"The hospital has the stronger position regarding the effect of the PPACA on the present appeal because Congress spoke clearly when it retroactively allowed reimbursement for non-patient care activities starting in 1983. This language calls into question the basic thesis 5 underlying the government's argument, namely that Medicare doesn't (at least as of 1983) extend to nonpatient- care activities when it reimburses the indirect costs of medical education. The government puts considerable weight on the no-inferences clause to argue that Congress left the issue with us and our sister circuits to address. We think, however, that this no-inferences provision is unclear at best and, in any event, does not contradict the clear meaning of the earlier language allowing reimbursement for non-patient care activities during the time period relevant to the present appeal."

"We hold, therefore, that the hospital should have received reimbursement as part of its IME adjustment for pure research in 1996."

Affirmed.

09-3429 The University of Chicago Medical Center v. Sebelius

Appeal from the United States District Court for the Northern District of Illinois, Andersen, J., Cudahy, J.

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