United States Third Circuit

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UPMC-Braddock Hosp. v. Sebelius, 08-4247

District court's grant of summary judgment in favor of the Secretary of the United States Department of Health and Human Services, denying a reimbursement claim for loss on depreciable assets resulting from a merger between two non-profit medical corporations is vacated and remanded where: 1) the Secretary's interpretation of the related party regulations, requiring examination of whether the parties were related pre- and post-merger, is contrary to the plain language of the regulations, and under the proper, pre-merger test, the parties were not related at the time of the transaction; and 2) the district court's determination that the merger was not a bona fide sale was not based on substantial evidence, in light of errors made in determining the value of certain assets.

Appellate Information

  • Argued 10/06/2009
  • Decided 01/20/2010
  • Published 01/20/2010

Judges

  • Before RENDELL and GARTH, Circuit Judges, and PADOVA, District Judge .

Court

  • United States Third Circuit

Counsel

  • For Appellant:
  • Samuel W. Braver, Esq., [Argued], Brendan G. Stuhan, Esq., Jan O. Wenzel, Esq., Buchanan Ingersoll & Rooney, Robert B. Ramsey, III, Esq., Titus & McConomy, Pittsburgh, PA, for Appellant.

  • For Appellees:
  • Joel L. McElvain, Esq., [Argued], United States Department of Justice Civil Division, San Francisco, CA, Michael S. Raab, Esq., United States Department of Justice Civil Division, Washington, DC, Jessica L. Smolar, Esq., Office of United States Attorney, Pittsburgh, PA, for Appellee.

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