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St. Francis Memorial Hospital v. Leavitt

December 11, 2008

ST. FRANCIS MEMORIAL HOSPITAL AND FRANKLIN BENEVOLENT CORPORATION F/K/A DAVIES MEDICAL CENTER, PLAINTIFFS,
v.
MICHAEL O. LEAVITT, SECRETARY, U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES, DEFENDANT.



The opinion of the court was delivered by: Maxine M. Chesney United States District Judge

STIPULATION AND [PROPOSED] ORDER TO STAY ACTION AND ORDER DIRECTING PARTIES TO FILE JOINT STATUS REPORT

Defendant, Michael O. Leavitt, the Secretary of Health and Human Services ("the Secretary") and Plaintiffs, St. Francis Memorial Hospital and Franklin Benevolent Corporation f/k/a Davies Medical Center (the "Hospitals"), by and through their undersigned counsel, respectfully stipulate that this Court enter an order staying the proceedings in the above- captioned action pending the final administrative and judicial disposition of the case of Provider Reimbursement Review Board ("PRRB") Group Appeal No. 98-1376G (the "Group Appeal").

In support of this stipulation, the parties state as follows:

1. The parties previously informed the Court that they were discussing the possibility of staying this case as well as another case, Glendale Memorial Hosp. and Health Ctr. v. Leavitt, CV08-1747 (MMM) (AGRx) (C.D. Cal.), pending the final administrative and judicial disposition of the Group Appeal. By a "final judicial disposition," the parties mean to refer to a final non-appealable Court decision.

2. Counsel for the Hospitals have been informed that the Group Appeal is set for a record hearing. Although it is impossible to predict with any certainty when the decision of the PRRB will be issued, the parties are hopeful that the decision may be issued in the reasonably near future.

3. In this action, Plaintiffs challenge three jurisdictional decisions by the PRRB. See Complaint ¶¶ 50, 58, 66, and Exhs. 1-3 thereto. The sole legal issue before the Court is whether the PRRB's decisions declining jurisdiction over Plaintiffs' claims for certain fiscal years at issue in the Group Appeal were arbitrary, capricious, contrary to the law, or an abuse of discretion.

4. In anticipation of the PRRB's eventually issuing a decision in the Group Appeal, to allow for the possibility that the final administrative and judicial disposition of the Group Appeal may obviate the need for further proceedings in this action, and in the interest of conserving the resources of the Court and the parties, the Hospitals and the Secretary believe that proceedings in the instant case should be stayed, pending the final administrative and judicial disposition of the Group Appeal.

5. In the event the Providers do not prevail upon the final administrative and judicial disposition of the Group Appeal, the Hospitals will dismiss the instant case with prejudice within thirty days following the date of such final disposition.

6. In the event the Providers prevail upon the final administrative and judicial disposition of the Group Appeal, the parties will jointly move the Court to reinstate the instant case for proceedings and a determination regarding the PRRB's decision denying the Hospitals the right to participate in the Group Appeal within thirty days following such final disposition.

7. In the event the Hospitals first prevail upon the final administrative and judicial disposition of the Group Appeal, and then prevail in the final disposition in the instant case (including any postjudgment proceedings and appeals), the Secretary will pay to the Hospitals the underlying Medicare payment to which they would have been entitled had they participated in the Group Appeal, without the necessity for a remand to the Secretary for further proceedings and a decision on the merits, within ninety days following the date of such final disposition.

8. In the event the PRRB does not issue a decision in the Group Appeal within six months following the date of the Court's order staying the instant case the Hospitals will have the right at any time thereafter to move the Court to reinstate the instant case, which motion the Secretary will not oppose. In the event that the Secretary settles the Group Appeal while this action is stayed, the Hospitals will have the right to move the Court to reinstate the instant case, which motion the Secretary will not oppose.

9. This request is made in good faith and not for purposes of delay.

ACCORDINGLY, THE PARTIES hereby stipulate and agree that:

1. Proceedings in the instant case be stayed, pending the final administrative and judicial ...


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