Professional Documents
Culture Documents
No. 15-1393
Cape Fear
Plaintiff - Appellant,
v.
SYLVIA MATHEWS BURWELL, in her official
Secretary of Health and Human Services,
capacity
as
Defendant - Appellee.
----------------------------------FUND FOR ACCESS TO INPATIENT REHABILITATION,
Amicus Supporting Appellant.
Appeal from the United States District Court for the Eastern
District of North Carolina, at Raleigh.
W. Earl Britt, Senior
District Judge. (5:14-cv-00508-BR)
Argued:
Decided:
March 7, 2016
Affirmed
opinion,
joined.
by
in
published opinion.
Judge Niemeyer wrote the
which Chief Judge Traxler and Judge Wilkinson
to
adjudicate
immediately
its
appeals
Administrative
on
such
claims
Law
Judge
awaiting
(ALJ)
for
administrative
assignment
more
than
90
to
an
days,
the
480,000
appeals
awaiting
assignment
to
an
ALJ,
and
the
to
more
While
than
800,000
appeals,
acknowledging
the
creating
unacceptability
ten-year
of
the
district
court
dismissed
the
Hospital
independent grounds.
Systems
It held (1)
that the Hospital System does not have a clear and indisputable
right to an ALJ hearing within a 90-day time frame, as required
3
We affirm.
Medicare
reimbursement
is
incontrovertibly
grotesque,
the
it
provides
comprehensive
administrative
process --
healthcare
provider
must
exhaust
before
ultimately
Indeed,
administrative
reviews
if
such
reviews
are
delayed,
however,
directing
the
to
hear
the
Hospital
I
Cape Fear Health System operates a number of facilities in
eastern North Carolina, delivering medical services to, among
others, beneficiaries of Medicare.
See 42
2012
and
Hospital
System
Medicare
services
September
2014,
2013,
on
the
over
that
the
Secretary
900
she
Hospital
claims
had
denied
for
initially
System
had
payment
to
the
reimbursement
for
authorized.
By
over
750
appeals
on
these claims that had been pending for more than 90 days before
the Office of Medicare Hearings and Appeals (OMHA) within HHS.
Those
appeals
reimbursement.
related
to
claims
for
some
$12.3
million
in
In
its
complaint,
the
Hospital
System
alleged
that
the
not deny the existence of the backlog, nor its size, as the
figures alleged by the Hospital System are those published by
HHS.
backlog has grown rapidly to more than 800,000 appeals and that,
with OMHAs current staffing of ALJs, it would take over ten
years for the ALJs to dispose of those appeals.
The allegations
utilization
additional
appeals
of
from
Medicare-covered
audits
conducted
services;
under
the
the
Recovery
unable
congressional
to
reduce
funding
or
has
even
stabilize
remained
the
relatively
backlog
because
stagnant
during
the last five years and additional ALJs therefore could not and
cannot be hired.
budget proposes more than tripling the funding for OMHA and, in
addition,
proposes
new
processes
that
would
facilitate
the
been aware of the existing backlog for some time, has recognized
the need for a legislative solution, and, indeed, is working on
a solution.
Cape Fear Health System does not disagree completely, but
it contends that the backlog is mainly due to the Secretarys
mismanagement of HHS resources.
that,
proposed
while
the
agency
has
pilot
programs
for
is
attributable
to
the
perverse
incentives
of
that
district
court
granted
the
Secretarys
motion
to
frame.
Second,
as
matter
of
discretion,
the
court
fail
advantage
in
adjudication
with
to
the
recognize
crafting
of
agencys
appeals.
problem-solving
HHSs
comparative
solution
The
to
court
the
efforts
and
institutional
delays
explained
in
that
the
the
II
Mandamus is a drastic remedy that must be reserved for
extraordinary situations involving the performance of official
acts or duties.
that
it
has
clear
and
indisputable
right
to
the
relief sought and that the responding party has a clear duty
to do the specific act requested.
v. Oncology Assocs., P.C., 198 F.3d 502, 511 (4th Cir. 1999).
In this case, Cape Fear Health System contends that the
Medicare Act gives it a clear and indisputable right to have its
appeals
decided
within
90
days
and
that
it
imposes
on
the
In support of this
42 U.S.C. 1395ff(d)(1)(A)
hearing,
thus
forcing
it
to
make
terrible
choice:
to
adjudicate
an
appeal
within
90
days
is
that
the
The
Secretary
argues
that,
while
the
statute
the time frame may not be satisfied and provides persons seeking
review
with
Secretary
specific
argues,
provided,
the
entitlement
to
avenue
of
relief.
such
escalation
is
Hospital
System
cannot
any
other,
regardless
Because,
the
remedy
show
of
as
the
Congress
indisputable
whether
escalation
begin
by
noting
that
the
process
that
Congress
has
for
multistep
reimbursement,
continues
administrative
process,
process
argument
is
that
necessary
court
through
and
detailed
concludes
with
and
the
to
address
should
the
enforce
Hospital
Systems
specific,
discrete
must,
in
the
first
Administrative
by
HHS
to
make
instance,
Contractor,
an
initial
submit
a
claim
private
11
contractor
determination
to
regarding
See 42
Medicare
Administrative
Contractor
may,
under
program
that
government
Contractor.
audit
contractor,
known
as
program
to
overpayments,
serve
and
it
the
Recovery
Audit
purpose
incentivized
of
the
. . .
recouping
Recovery
Audit
Id.
1395ddd(h)(1).
Healthcare
providers
Administrative
Contractor
or
the
Recovery
Audit
the
redetermination,
it
provider
may
seek
is
dissatisfied
reconsideration
by
with
a
the
Qualified
may
receive
and
consider
any
additional
evidence
42
the
42 C.F.R.
405.968(a)(1).
The
Statement
of
Organization,
Functions,
and
Delegations
of
At the fourth
Departmental
U.S.C.
Appeals
1395ff(d)(2).
Board
for
The
de
novo
Departmental
review.
Appeals
See
42
Boards
405.1130.
The Medicare Act establishes deadlines for each step in the
administrative
review
process
and
specifies
the
consequences
If
the QIC fails to meet this deadline, the healthcare provider may
13
bypass
the
QIC
determination
and
escalate
the
process
by
Id.
ALJ, the Medicare Act provides that an ALJ shall conduct and
conclude a hearing on a decision of a [QIC] . . . and render a
decision on such hearing by not later than the end of the 90-day
period beginning on the date a request for hearing has been
timely
filed.
Id.
1395ff(d)(1)(A);
see
also
42
C.F.R.
decision
before
the
deadline,
the
healthcare
provider
may
Departmental
42 U.S.C. 1395ff(d)(3)(A).
Appeals
Board
does
not
Finally, if
conclude
its
review
had
been
escalated
past
the
ALJ
level,
42
C.F.R.
United
States
district
court],
notwithstanding
any
the
claim
in
the
first
instance
to
Medicare
review
by
United
States
district
court
within
enforce
not
an
isolated
contemplated
by
deadline
the
and
Medicare
thereby
Act
--
impose
indeed,
a
in
The precedent
into
medias res.
hybrid
process
involving
judicial
action
in
such an idea.
judicial
intervention
and
supervision
is
grounded
in
U.S.C.
1395ff(d)(1)(A)
(emphasis
added).
But
the
next
1395ff(d)(3)(A).
Consequently,
instead
of
creating
for
the
ALJ
hearing
beyond
the
90-day
deadline
or
16
the
next
level
of
review.
The
Hospital
Systems
argument
focuses on only the provision creating the 90-day time frame and
fails
to
account
for
administrative process.
restricted.
(noting
its
context
in
the
comprehensive
that
it
is
fundamental
canon
of
statutory
&
Williamson
Tobacco
Corp.,
529
U.S.
120,
132
(2000)
provide
90-day
deadline
for
an
ALJs
decision,
thereby
the
ALJ
hearing
and
obtaining
review
by
the
the
anticipated
provided
healthcare
that
its
the
chosen
provider
90-day
remedy.
these
deadline
But
options,
might
Congress
not
In
Congress
be
met
and
clearly
did
not
Only if
that
whether
to
process
is
provides
it
waive
its
unreasonable
the
right
as
terrible
to
due
it
results
choice
process
of
or
in
deciding
to
suffer
hearing,
thereby
judicial review.
42
U.S.C.
leaving
itself
without
record
for
405(g),
which
requires
that
judicial
review
be
presumptions.
The
implementing
18
regulations
provide
System
405.968(a)(1);
has
42
not
claimed
U.S.C.
delay.
1395ff(c).
42
Thus,
C.F.R.
healthcare
create
their
record
at
the
QIC
stage
and
thereafter
Hospital
System
would
have,
as
it
assumes,
right
to
understood,
a
513
therefore,
multilevel,
U.S.
at
coherent
the
569,
which
Medicare
regulatory
authorizes
Act
scheme,
healthcare
the
Act
gives
the
Hospital
System
the
clear
and
System
would
have
us
do,
we
would
be
undermining
in
denying
the
Hospital
In
the
Medicare
Act,
Congress
providers
to
engage
an
Executive
order.
healthcare
administrative
process
in
Systems
making
claims
request
for
required
for
Branch
Medicare
review,
but
only
after
the
Secretary
is
given
the
backlog
were
fully
attributable
to
the
Even if
Secretarys
20
or
otherwise
to
provide
legislative
solution,
it
would
have
greater
competence
to
administer
the
Medicare
And, in addition,
In re
is in grave condition.
Article
is
the
II
patient
answer
or,
in
the
indeed,
manner
even
the
Hospital
possible
or
System
desirable.
21
the
reasons
given,
we
affirm
the
district
courts
III
Cape Fear Health System also sought a declaratory judgment
in
its
favor
that
HHSs
delay
in
adjudication
of
Medicare
Systems
declaratory
Inc.
Mirowski
Family
v.
judgment
Ventures,
claim.
LLC,
134
S.
See
Medtronic
Ct.
843,
849
22