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Council for Urological Interests v. Burwell

United States Court of Appeals for the District of Columbia Circuit

790 F.3d 212 (2015)

Facts

In 2008, the Department of Health and Human Services (HHS) Secretary Sylvia Burwell (secretary) (defendant) issued a new rule that prohibited all physicians from leasing medical equipment to a hospital using a per-use fee—i.e., per-click leases—if the physician refers patients to the hospital for procedures that involve the equipment. The secretary relied on the Stark Law for the authority to issue the rule, which was established to ensure physicians did not have financial incentives to refer patients for unnecessary procedures. Following the secretary’s rule, the Council for Urological Interests (council) (plaintiff) filed suit, alleging that the secretary’s issuance of the rule violated the equipment-rental-exception provision in the Stark Law. The district court granted the secretary’s motion to dismiss on the ground that the HHS regulations were entitled to deference under Chevron USA, Inc. v. Natural Resources Defense Council, Inc., 467 U.S. 837 (1984). The council appealed.

Rule of Law

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Issue

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Holding and Reasoning (Griffith, Henderson, J.J.)

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Dissent (Henderson, J.)

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