Los Angeles Haven Hospice, Inc. v. Kathleen Sebelius, No. 2:2008cv04469 - Document 65 (C.D. Cal. 2009)

Court Description: FINAL JUDGMENT AND REMAND by Judge George H. Wu: IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that judgment shall be, and hereby is entered in favor of plaintiff Los Angeles Haven Hospice, Inc. ("Haven Hospice") and against defendant Kathlee n Sebelius, as Secretary of the United States Department of Health and Human Services ("HHS"), as follows: Pursuant to this Court's authority under 5 U.S.C. Section 706(2)(A) & (C) of the Administrative Procedure Act, the hospice cap r egulation at 42 C.F.R. 418.309(b)(1) is unlawful and set aside. HHS is hereby enjoined prospectively from using the current regulation found at 42 C.F.R. 418.309(b)(1) to calculate hospice cap liability for any hospice. HHS' prior calculation of Haven Hospice's cap liability for fiscal year 2006, including HHS' repayment demand of 4/2/2008, is hereby set aside. HHS is further ordered not later than one year from the date of this judgment to return prior payments by Haven Hospice o n the 2006 demand, with interest; except that, at any time prior to such return, HHS may credit any portion of such prior payments, with interest, to a new cap repayment demand to Haven Hospice for 2006, such demand to be calculated in accordance wit h 42 U.S.C. Section 1395f(i)(2). Haven Hospice is also awarded its costs which it may hereafter apply for as well as to move for an award of its attorneys' fees. This matter is remanded to HHS for proceedings not inconsistent with this judgment, except that this Court retains jurisdiction to consider application for costs and/or fees. (MD JS-6, Case Terminated). (gk)

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Los Angeles Haven Hospice, Inc. v. Kathleen Sebelius Doc. 65 1 SHEPPARD, MULLIN, RICHTER & HAMPTON LLP A Limited Liability Partnership Including Professional Corporations 2 BRIAN M. DAUCHER, Cal. Bar No. 174212 3 BRIAN B. FARRELL, Cal. Bar No. 247878 Telephone: 714-513-5100 4 Facsimile: 714-513-5130 bdaucher@sheppardmullin.com 5 bfarrell@sheppardmullin.com REMAND/JS-6 6 7 Attorneys for Plaintiff, Los Angeles Haven Hospice, Inc. 8 9 10 UNITED STATES DISTRICT COURT 11 CENTRAL DISTRICT OF CALIFORNIA 12 LOS ANGELES HAVEN HOSPICE, 13 INC., a California corporation, CASE NO. CV08-4469-GW (RZx) 14 The Honorable George H. Wu Plaintiff, 15 16 v. FINAL JUDGMENT AND REMAND KATHLEEN SEBELIUS, Secretary of 17 United States Department of Health and Human Services, 18 Hearing Information: Defendant. 19 Date: August 17, 2009 Time: 8:30 a.m. 20 Crtrm.: 10 21 22 23 Complaint Filed: July 8, 2008 24 25 26 27 28 W02-WEST:NA6\401706494.1 [PROPOSED] FINAL JUDGMENT Dockets.Justia.com FINAL JUDGMENT AND REMAND 1 2 IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that judgment 3 shall be, and hereby is entered in favor of plaintiff Los Angeles Haven Hospice, Inc. 4 ("Haven Hospice") and against defendant Kathleen Sebelius, as Secretary of the 5 United States Department of Health and Human Services ("HHS"), as follows: 6 HHS' regulation governing calculation of the hospice cap, published at 7 42 C.F.R. 418.309(b)(1), is arbitrary and capricious and in excess of statutory 8 authority for the reasons specified in this Court's prior order of July 13, 2009 9 granting summary judgment of invalidity. Therefore, pursuant to this Court's 10 authority under 5 U.S.C. § 706(2)(A) & (C) of the Administrative Procedure Act, 11 the hospice cap regulation at 42 C.F.R. 418.309(b)(1) is unlawful and set aside. 12 HHS is hereby enjoined prospectively from using the current regulation found at 13 42 C.F.R. 418.309(b)(1) to calculate hospice cap liability for any hospice. 14 HHS' prior calculation of Haven Hospice's cap liability for fiscal year 2006, 15 including HHS' repayment demand of April 2, 2008, is hereby set aside. HHS is 16 further ordered not later than one year from the date of this judgment to return prior 17 payments by Haven Hospice on the 2006 demand, with interest; except that, at any 18 time prior to such return, HHS may credit any portion of such prior payments, with 19 interest, to a new cap repayment demand to Haven Hospice for 2006, such demand 20 to be calculated in accordance with 42 U.S.C. § 1395f(i)(2). 21 Haven Hospice is also awarded its costs which it may hereafter apply for as 22 well as to move for an award of its attorneys’ fees. 23 This matter is remanded to HHS for proceedings not inconsistent with this 24 judgment, except that this Court retains jurisdiction to consider application for costs 25 and/or fees. 26 DATED: August 20, 2009 _________________________________ 27 THE HONORABLE GEORGE H. WU 28 UNITED STATES DISTRICT COURT JUDGE W02-WEST:NA6\401706494.1 -1- [PROPOSED] FINAL JUDGMENT 1 Respectfully submitted by: 2 Dated: August 3, 2009 3 SHEPPARD, MULLIN, RICHTER & HAMPTON LLP 4 5 By 6 7 BRIAN M. DAUCHER BRIAN B. FARRELL 8 Attorneys for Plaintiff Los Angeles Haven Hospice, Inc. 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 W02-WEST:NA6\401706494.1 -2- [PROPOSED] FINAL JUDGMENT

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