BOWEN V. GEORGETOWN UNIVERSITY HOSP.
488 U.S. 204 (1988)
NATURE OF THE CASE: This was a dispute over the retroactive application of a new rule.
FACTS: Congress authorized the Secretary of Health and Human Services to promulgate
regulations setting limits on the levels of Medicare costs that will be reimbursed. In 1981,
HHS set limits on the amount of money Medicare will reimburse hospitals. In 1983, the D.C.
Circuit invalidated that rule on procedural grounds. In 1984, HHS held new procedurally
proper rulemaking proceedings, and it then reissued the 1981 rule with retroactive effect.
Congress had also changed the law and the new 1984 rule only applied to cost reimbursement
for 1981 and 1982. Several hospitals (P) wanted a judicial review of the 1984 rule as they
claimed it was unlawfully retroactive.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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