Hospitals may see more lawsuits related to reimbursement regulations after the U.S. Supreme Court struck down the Chevron doctrine on June 28, overturning the precedent of deferring to federal agency interpretations during disputes, according to Moody's Investor Services.
The ratings agency released a report predicting litigation would "almost certainly" increase and the heavily regulated healthcare industry would likely see litigation related to reimbursement, insurance eligibility and more. Insurers, pharmaceutical companies and patient advocacy groups could "bring lawsuits that ultimately raise costs and reduce hospital reimbursement," according to the report.
Hospitals won't likely see changes to their expenses and reimbursement right away since the federal government can still develop rules and regulations, and lawsuits take time to move through the court system and reach a conclusion. The ruling also doesn't mean new lawsuits challenging regulatory interpretation of laws will succeed, according to the report.
Some health systems are using the ruling to their advantage, as well. Hackensack Meridian Health in Edison, N.J., sued HHS Secretary Xavier Becerra, challenging the administration's interpretation of Medicare statutes decreasing reimbursement.