Florida Medical Ass'n v. Department of Health, Education, & Welfare

947 F. Supp. 2d 1325, 85 Fed. R. Serv. 3d 1029, 2013 WL 2382270, 2013 U.S. Dist. LEXIS 78069
CourtDistrict Court, M.D. Florida
DecidedMay 31, 2013
DocketCase No. 3:78-CV-178-J-34MCR
StatusPublished

This text of 947 F. Supp. 2d 1325 (Florida Medical Ass'n v. Department of Health, Education, & Welfare) is published on Counsel Stack Legal Research, covering District Court, M.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Florida Medical Ass'n v. Department of Health, Education, & Welfare, 947 F. Supp. 2d 1325, 85 Fed. R. Serv. 3d 1029, 2013 WL 2382270, 2013 U.S. Dist. LEXIS 78069 (M.D. Fla. 2013).

Opinion

ORDER

MARCIA MORALES HOWARD, District Judge.

The issue presented in this case is whether an injunction, entered some 33 years ago, which permanently enjoins the United States Department of Health and Human Services (“HHS”) “from disclosing any list of annual Medicare reimbursements amounts, for any years” that identifies providers of services under Medicare, should be vacated or modified because continued prospective application “is no longer equitable.” Rule 60(b)(5), Federal Rules of Civil Procedure (Rule(s)); see Alley v. U.S. Dep’t of Health and Human Servs., 590 F.3d 1195, 1209-10 (11th Cir.2009). The issue is brought to the Court by Inter-venors Jennifer D. Alley and Real Time [1327]*1327Medical Data Inc.’s Motion to Vacate Permanent Injunction (Doc. 55; RTMD Motion), and Intervenor Dow Jones & Company, Inc.’s Motion to Vacate Permanent Injunction. (Doc. 56; Dow Jones Motion). The issues have been extensively briefed,1 and the parties have submitted evidence in support of their respective positions.2 The Court heard oral argument on June 20, 2012, (Doc. 65; 06/20/12 Clerk’s Minutes), the transcript of which is incorporated herein. (Doc. 66; Tr.). Additionally, on August 20, 2012, the parties filed post-hearing briefs.

I. Background

A. District Court Proceedings Leading to the Entry of the Permanent Injunction3

In March 1977, the Secretary of the United States Department of Health, Education and Welfare,4 the agency responsible for administering Medicare, released a list identifying physicians or groups of physicians who received $100,000.00 in Medicare reimbursements in 1975. See Fla. Medical Ass’n., Inc. v. Dep’t of Health, Education, and Welfare, 479 F.Supp. 1291, 1297 (M.D.Fla.1979); see also Alley, 590 F.3d at 1198. The disclosure, which was widely publicized, also correlated the gross reimbursements for 1977 Medicare claims with the name of each physician identified. 479 F.Supp. at 1297. The information published was later found to be “inaccurate in many ways.” Id.

Also in March, 1977, the Secretary published in the Federal Register (42 Fed. Reg. 14703) an interim amendment to the rules for disclosure of Social Security records, contained in 20 C.F.R. s 401.1 Et seq., in order to conform the current regulations to the most recent requirements of the Freedom of Information Act. The effect of the amendment to 20 C.F.R. s 401.1 Et seq. was to [1328]*1328adopt the principles of the Freedom of Information Act as guiding rules for the disclosure of information by [HHS], 42 Fed.Reg. at 14704. See 20 C.F.R. s 401.3(a).

Id. Then, in November 1977, the Secretary directed its carriers to publish another list, this time identifying all physicians and providers who received medicare reimbursements in 1977. Id.

The list was to include full names of the physicians and their providers, their addresses, the net total amount of Medicare reimbursement paid [directly] ... to each physician or provider, and the net total amount of Medicare reimbursements paid to beneficiaries for ... services furnished by each physician or provider.

Id. On March 24, 1978, Plaintiff Florida Medical Association (the “FMA”) and six individual physicians, on behalf of ah Florida physicians whose patients were Medicare beneficiaries, filed suit to enjoin the scheduled disclosures. Alley, 590 F.3d. at 1198-99; Doc. 59 at 94-100 (FMA Complaint). The FMA described the contested information as follows:

Detailed information on the amount of “assigned” Medicare payments made directly to individual physicians and “unassigned” payments made to individual Medicare beneficiaries on account of physician services are contained in a system of records maintained by defendants Blue Shield and Group Health, Inc., under the control and direction of HEW and the Secretary. The information contained in this system of records is retrievable by the names of individual physicians or groups or physicians, or by some identifying number or symbol particularly assigned to individual physicians or groups of physicians.

FMA Complaint ¶ 11.

In the FMA Complaint, the FMA invoked the Court’s jurisdiction stating that its claims arose “under the Freedom of Information Act, 5 U.S.C. § 552 [“FOIA”], the Privacy Act of 1974, 5 U.S.C. § 552a, 18 U.S.C. § 1905 [the Trade Secrets Act], and the First, Fourth, Fifth and Fourteenth Amendments to the Constitution of the United States.” Id. ¶ 1. It asserted that in 1977, HHS made public the names of physicians or physician groups whose billing exceeded $100,000 or more in Medicare payments in 1975, id. ¶ 12, and that HHS had announced an intention to make additional similar disclosures on April 30, 1978. Id. ¶¶ 13-18. Alleging that further release of such information would violate FOIA, the Privacy Act, the Trade Secrets Act, and the United States Constitution, the FMA Plaintiffs requested that the Court declare “that the threatened disclosure of Medicare payments made on account of billings by members of the class” would be unlawful, and asked the Court to preliminarily and permanently enjoin HHS from disclosing this information. See FMA Complaint at 7; see also Alley, 590 F.3d at 1199.

On April 28, 1978, the Court entered a Temporary Restraining Order, which the parties agreed would remain in place until the Court resolved the case, or June 6, 1978, whichever occurred first. See 479 F.Supp. at'1295.5 The Court referred the Motion for Preliminary Injunction to the Magistrate Judge who issued findings and recommendations, and the parties filed written objections. Id. On May 16, 1978, the Court heard argument concerning those objections. See id. Having filed [1329]*1329cross motions for summary judgment, the parties stipulated that the Court should “consolidate its ruling on the merits in this case with its consideration of Plaintiffs Preliminary Injunction Motion.” Id. Subsequent to that hearing, on June 12, 1978, the Court permitted the American Medical Association (“AMA”) to intervene on behalf of its more than 200 licensed physician members nationwide. Id. As such, the Court recertified the class to include all physicians licensed to practice in Florida and all members of the AMA, if they were providers of Medicare services and would be individually identified by the disclosure of annual medicare reimbursement amounts. Id. at 1295-96.

After giving the parties additional time to submit memoranda, the Court was faced with the possibility that its subject matter jurisdiction might be extinguished if the Temporary Restraining Order expired, and HHS disclosed the information at issue, before the entry of an order resolving the matter. See id.

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947 F. Supp. 2d 1325, 85 Fed. R. Serv. 3d 1029, 2013 WL 2382270, 2013 U.S. Dist. LEXIS 78069, Counsel Stack Legal Research, https://law.counselstack.com/opinion/florida-medical-assn-v-department-of-health-education-welfare-flmd-2013.