Supreme Court Upholds HHS Reimbursement Method for Hospitals Serving Low-Income Patients in 7-2 Ruling

The Supreme Court sided with the Department of Health and Human Services (HHS) in a 7-2 ruling regarding the agency’s method of reimbursing hospitals for treating low-income patients. The court upheld HHS’s interpretation of the payment policy. Specifically, the dispute centered on how HHS calculates payments to hospitals that serve a disproportionately large number of low-income patients. The Supreme Court’s decision affirms the agency’s narrower interpretation of the regulations governing these payments. The majority of justices agreed with HHS’s approach, while two justices dissented.

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Date: April 29, 2025

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Mark Chiang