The National Association for Home Care & Hospice (NAHC) filed a lawsuit against the Department of Health and Human Services (HHS) over a payment system that has significantly reduced reimbursements for home health agencies since its implementation in 2020. However, the US District Court for the District of Columbia dismissed the lawsuit on April 26, citing the plaintiffs’ failure to exhaust their administrative remedies. The court ruled that the NAHC skipped the agency’s process for seeking expedited judicial review, leading to the dismissal of the case.
The court stated that they will grant the federal government’s motion for summary judgment, effectively ending the legal battle over the disputed payment system. Despite NAHC’s own motion being denied, the lawsuit is now closed, and home health agencies will have to navigate the reduced reimbursements according to the implemented system.
Moving forward, home health agencies affected by the payment system will need to explore other avenues for addressing their concerns. The ruling highlights the importance of exhausting all administrative remedies before pursuing legal action, as skipping steps in the process can lead to unfavorable outcomes in court. Home health agencies may need to work within the existing framework or advocate for changes through other channels to mitigate the impact of reduced reimbursements.