Chestnut Hill Benevolent Association v. Burwell

142 F. Supp. 3d 91, 2015 U.S. Dist. LEXIS 148534, 2015 WL 6736779
CourtDistrict Court, District of Columbia
DecidedNovember 3, 2015
DocketCivil Action No. 2014-2135
StatusPublished
Cited by2 cases

This text of 142 F. Supp. 3d 91 (Chestnut Hill Benevolent Association v. Burwell) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Chestnut Hill Benevolent Association v. Burwell, 142 F. Supp. 3d 91, 2015 U.S. Dist. LEXIS 148534, 2015 WL 6736779 (D.D.C. 2015).

Opinion

MEMORANDUM OPINION

JAMES E. BOASBERG, District Judge

The federal Medicare program reimburses religious nonmedical healthcare institutions (RNHCIs) for the provision of specific types of nonmedical care to certain religious patients. In addition, reimbursement is available for the RNHCIs’ nurse-training programs if such programs satisfy articulated criteria. The four- Plaintiffs here — all Christian Science nursing facilities — desire reimbursement for running multi-year nursé-training programs. They bring suit seeking to undo two decisions by .the Administrator for the' Centers for Medicare and Medicaid Services (CMS) that concluded Plaintiffs were not entitled to such reimbursements because they failed to méet certain regulatory criteria. Both sides have now moved for summary judgment. As the Court ultimately agrees that Plaintiffs’ programs were not sufficiently accredited, it will affirm CMS’s decision and enter judgment in Defendant’s favor.

I. Background

A.' The Medicare Statutory and Regulatory Framework

Now nearly 50 years old, the Medicare statute is something of a palimpsest: Congress erases old terms to make room for new ones, but vestiges remain. A little history, then, goes a long way in making intelligible certain statutory and regulatory language, that, at first blush, seems mired in impenetrable bureaucratese.

*94 1. Religious Nonmedical Healthcare Institutions

Medicare was enacted by Congress in 1965 to provide federally funded health insurance for the aged and disabled. See 42 U.S.C. § 1395 et seq.; id. § 1395c. At issue in this dispute is Medicare Part A, which authorizes the government — i.e., CMS — to reimburse certain institutions, like hospitals and skilled nursing facilities, for providing inpatient and similar types of care. See id. § 1395d. (The Court uses CMS to refer to both that entity and its pre-2001 predecessor, the Health Care Financing Administration.) .The institutions providing such care are known as “provider[s] of services” or “providers” under the statute, see id. § 1395x(u), which terms broadly encompass hospitals, skilled nursing facilities, and, as of 1997, RNHCIs. See id. § 1395x(y)(l). The last are inpatient institutions that “provide[ ] only non-medical nursing items and services exclusively to patients who choose to rely solely upon a religious method of healing and for wliom the acceptance of medical health services would be inconsistent with their religious beliefs.” Id. § 1395x(ss)(l)(C).

Although the term RNHCI first, appeared in 1997, the statute had since its inception provided an express accommodation for members of the First Church of Christ, Scientist (or “Mother Church”)— who object to receiving medical care — by allowing Christian Scientists, in lieu of receiving inpatient medical care from hospitals, to receive reimbursable nonmedical care from a “Christian Science sanatorium operated, or listed and certified, by the [Mother Church].” Pub.L. No. 89-97 §§ 1861(e), (y), 79 Stat. 286, 315, 324 (1965). That provision remained in effect until 1996, when a federal district court held that the statute’s exemptions, expressed as they were in “sect-specific” terms, “ ‘cross[ed] the line from permissible accommodation to impermissible establishment’ ” of religion in violation of the First Amendment’s Establishment Clause. Children’s Healthcare is a Legal Duty, Inc. v. Vladeck, 938 F.Supp. 1466, 1485 (D.Minn.1996) (quoting Bd. of Educ. of Kiryas Joel Vill. Sch. Dist. v. Grumet, 512 U.S. 687, 710, 114 S.Ct. 2481, 129 L.Ed.2d 546 (1994)). This precipitated Congress’s amendment of the Medicare statute in 1997 to excise all Christian Science-specific references and replace them with, references to RNHCI — Congress’s sect-neutral neologism., See Balanced Budget Act of 1997, Pub.L. No, 105-33 § 4454, 111 Stat. 251 (1997) (codified at 42 U.S.C. § 1395x(ss)). All of this notwithstanding, it appears that the only Medicare-certified RNHCIs — of .which there were only 17 during the relevant period — are Christian Science facilities. See Administrative Record II (A.R.II) at 4 n.4 (Second CMS Decision).

2. Reimbursement for Approved Educational Activities

In order to receive Medicare reimbursement, RNHCIs must establish an agreement with the Secretary of Health and Human Services, comply with that agreement, and abide by all relevant Medicare statutes and regulations; See 42 U.S.C. §§ 1395cc(a)(1), (b)(2). In addition to offering reimbursement for inpatient care, the statute’s implementing regulations have, since 1966, allowed providers to get reimbursed for running “approved educational activities” thát “contribute to the quality of pátient care” rendered by that provider. See 31 Fed.Reg. 14808, 14814 (Nov. 22, 1966) (promulgating 42 C.F.R. § 405.421), redesignated as 42 C.F.R. § 413.85 (1986). In the 1966 regulations, the Secretary of the Department of Health, Education, and Welfare (now HHS) recognized that demand for nurses, doctors, and other paramedical specialties outpaced supply, and so many medical fa *95 cilities provided training in those specialties to help close the gap. See 31 Fed. Reg. at 14814 (concluding that such training was often “necessary to meet the community’s needs for medical and paramedical personnel”) (interpreting House and Senate committee reports accompanying the 1965 Medicare Act, e.g., S.Rep. No. 89404, at 36 (1965); H.R.Rep. No. 89-213, at 32 (1965)). Although the Secretary recognized that “the costs of such educational activities should he borne by the community,” it was clear that

many communities have not assumed responsibility for financing these programs and it is necessary that support be provided by those purchasing health care. Until communities undertake to bear these costs, [Medicare] will participate appropriately in. the support of these activities.-

Id. (emphasis added). For this reason, the government committed to “share in the support of educational activities customarily or traditionally carried on by providers in conjunction with their operations,” but clarified that it was not the Secretary’s intent that educational institutions already running such programs should shift those costs to providers as a way of obtaining Medicare reimbursement. See id.; Thomas Jefferson Univ. v. Shalala,

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142 F. Supp. 3d 91, 2015 U.S. Dist. LEXIS 148534, 2015 WL 6736779, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chestnut-hill-benevolent-association-v-burwell-dcd-2015.