Hospitals can be 'urban' and 'rural' at same time: U.S. appeals court

February 4, 2016 9:24 PM

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NEW YORK The federal appeals court in New York struck down a U.S. regulation that made it harder for hospitals to provide better medical care at lower cost by claiming they were "rural" for some purposes and "urban" for others.

Thursday's decision by the 2nd U.S. Circuit Court of Appeals is a victory for hospitals in urban areas including the acute care Lawrence + Memorial Hospital of New London, Connecticut, which said the Department of Health and Human Services' "reclassification rule" forced it to overpay for drugs that...

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