A recent decision by the US District Court for the District of Columbia has dismissed 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 court ruled in favor of the federal government’s motion for summary judgment, 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. By ruling in this manner, the court indicated that home health agencies should have pursued an expedited judicial review process before resorting to legal action. The court found that by bypassing this process, NAHC did not meet the necessary requirements to bring its case before the court.
Despite this setback for NAHC and home health agencies affected by the payment system, it is important to note that following proper procedures is essential when challenging government actions. By emphasizing the need to exhaust administrative remedies before seeking judicial review, this ruling serves as a reminder of the legal steps that must be taken in such cases. Moving forward, it is likely that NAHC and other organizations will be more careful to adhere to these procedures when challenging government policies in order to avoid similar outcomes in future lawsuits.