29 hospitals appeal decision over Medicare outlier payments

By Lisa Schencker  | May 23, 2016

Twenty-nine hospitals are appealing a judge’s ruling last year over outlier payments to hospitals for particularly expensive patients.

The hospitals had challenged regulations governing outlier payments for fiscal years 1997 through 2007, saying the HHS secretary’s “flawed regulations and misguided enforcement” shorted them $350 million. They alleged HHS didn’t properly account for the skewed data of the hospitals that “turbocharged,” a practice in which hospitals would improperly manipulate their charges to receive additional outlier payments.

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