U.S. District Court Holds Statutory Merger of Hospital Was Not Bona Fide Sale

The U.S. District Court for the District of Columbia recently upheld the Centers for Medicare and Medicaid Services (CMS) Administrator’s finding that a statutory merger was not a bona fide sale and as a result, the surviving entity could not recover a Medicare loss on the merged entity’s depreciable assets. St. Luke’s Hosp. v. Sebelius, No. 08-0883 (D.D.C. Sept. 30, 2009).

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