A recent decision by the US District Court for the District of Columbia has dismissed a lawsuit filed against the Department of Health and Human Services (HHS) regarding a payment system that has reduced reimbursements for numerous home health agencies since 2020. In a memorandum opinion on April 26, the court found that the plaintiffs, represented by the National Association for Home Care & Hospice (NAHC), had not followed proper procedures by failing to exhaust their administrative remedies before filing the lawsuit.
As a result, the court ruled in favor of the federal government’s motion for summary judgment. In addition to dismissing the lawsuit, NAHC’s own motion was also denied, which sought to have the payment system declared unlawful. The ruling highlights the importance of following proper procedures in challenging government actions and serves as a reminder that organizations must first pursue administrative remedies before seeking judicial review.
The decision is likely to be a setback for NAHC and other organizations that have been affected by this payment system, but it underscores the need for these groups to exercise caution when challenging government policies. Moving forward, it is expected that NAHC and other organizations will be more mindful of these procedures when challenging government policies in order to avoid similar setbacks in future cases.