Edison, N.J.-based Hackensack Meridian Health took immediate advantage of the Supreme Court's ruling to overturn Chevron deference.
On the same day of the court's ruling, Hackensack filed a lawsuit against HHS Secretary Xavier Becerra challenging the formula for disproportionate share hospital payments.
"In this new paradigm, more than ever, the secretary’s actions at issue here must fall," Hackensack wrote in the June 28 lawsuit filed in Washington, D.C. federal court.
Audrey Murphy, the system's vice president and chief legal officer, told Becker's that HMH has long been concerned about CMS' administration of Medicare statutes.
"CMS has interpreted alleged statutory ambiguities in ways that deprive HMH of vital payments, and courts often deferred to those interpretations," Ms. Murphy said. "As the pandemic has proven, ensuring proper payment by Medicare is essential for nonprofit health systems like HMH to continue delivering lifesaving frontline care in a financially stable manner."
She said the health system had been following the case closely and by overturning the doctrine, the Supreme Court has "determined that the construction of statutory provisions, even those subject to ambiguity, should lie with the judiciary."
"This creates a meaningful opportunity for health systems like HMH to ensure rigorous adherence to the payment policies Congress established," Ms. Murphy said. "As a leader in healthcare, HMH chose to lead this challenge to CMS' administration of its reimbursements."
Ms. Murphy said the system's lawsuit "not only fight[s] for past due Medicare reimbursements, but, more importantly, clarity from Medicare on data that determines [supplemental security income] reimbursements, which would allow the health system to ensure future accurate payments."
As for future lawsuits, Ms. Murphy said Hackensack is always evaluating its position "with respect to Medicare repayment rules and policies, and it will bring any actions that it believes will best help it achieve its mission of providing lifesaving frontline care."