A federal court in Washington DC recently ruled against a lawsuit filed by the National Association for Home Care & Hospice (NAHC) against the Department of Health and Human Services (HHS) regarding a payment system that has significantly reduced reimbursements for numerous home health agencies since 2020. The US District Court for the District of Columbia made this decision in a memorandum opinion on April 26, stating that the plaintiffs failed to follow proper procedures by not exhausting their administrative remedies before filing the lawsuit.
As a result, the court denied NAHC’s own motion, which sought to have the payment system declared unlawful. The ruling indicates that NAHC should have pursued an expedited judicial review process before resorting to legal action. By bypassing this process, the court found that NAHC did not meet the necessary requirements to bring their case before the court.
The decision serves as a reminder of the importance of following proper procedures when challenging government actions. Moving forward, it is likely that NAHC and other organizations will be more careful to adhere to these procedures when challenging government policies in the future. The setback for home health agencies affected by the payment system may be temporary, but it underscores the need for legal clarity and accountability in healthcare policy decisions.