In 2020, the Department of Health and Human Services (HHS) introduced a payment system that has caused significant cuts in reimbursements for home health agencies. The National Association for Home Care & Hospice (NAHC) filed a lawsuit against the HHS in an attempt to challenge the new system. However, the US District Court for the District of Columbia dismissed the case on April 26, citing that NAHC failed to follow proper administrative procedures before filing their lawsuit.
The court ruled that NAHC skipped the agency’s process for seeking expedited judicial review, which led to the dismissal of their case. The ruling stated that they will grant the federal government’s motion for summary judgment, effectively ending any legal battle over the disputed payment system. Despite NAHC’s own motion being denied, their lawsuit is now closed and home health agencies must adjust to the reduced reimbursements according to the implemented system.
Moving forward, home health agencies affected by this payment system will need to explore alternative options for resolving their concerns. This decision highlights the importance of following proper administrative procedures before pursuing legal action. Skipping steps can lead to unfavorable outcomes in court and ultimately hinder efforts to address issues such as reduced reimbursements. Home health agencies may need to work within existing frameworks or advocate for changes through other channels in order to mitigate these impacts on their services and patients.
