Court Ruling Slams the Brakes on Lawsuit Challenging HHS Payment System for Home Health Agencies

A recent court decision in Washington DC has ruled against a lawsuit filed 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 determination in a memorandum opinion on April 26, stating that the plaintiffs, represented by the National Association for Home Care & Hospice (NAHC), did not follow proper procedures by failing to exhaust their administrative remedies before filing the lawsuit.

The court also denied NAHC’s own motion, which sought to have the payment system declared unlawful. The ruling highlights the importance of following proper procedures in challenging government actions. By emphasizing the need to exhaust administrative remedies before seeking judicial review, the ruling serves as a reminder of the legal steps that must be taken in such cases.

The decision comes as a setback for NAHC and home health agencies affected by the payment system, but it is likely that they will be more careful to adhere to these procedures when challenging government policies in the future.