UPMC-Braddock Hosp. v. Sebelius, No. 08-4247

District court's grant of summary judgment in favor of the Secretary of the United States Department of Health and Human Services, denying a reimbursement claim for loss on depreciable assets resulting from a merger between two non-profit medical corporations is vacated and remanded where: 1) the Secretary's interpretation of the related party regulations, requiring examination of whether the parties were related pre- and post-merger, is contrary to the plain language of the regulations, and under the proper, pre-merger test, the parties were not related at the time of the transaction; and 2) the district court's determination that the merger was not a bona fide sale was not based on substantial evidence, in light of errors made in determining the value of certain assets.     

Read UPMC-Braddock Hosp. v. Sebelius, No. 08-4247

Appellate Information

On Appeal from the United States District Court for the Western District of Pennsylvania

Opinion Filed January 20, 2010

Judges

Before: Rendell and Garth, Circuit Judges, and Padova, District Judge

Opinion by Circuit Judge Rendell

Counsel:

For Appellant:  Samuel W. Braver, Buchanan Ingersoll & Rooney

For Appellee:   Joel L. McElvain, US Departmet of Justice, Civil Division