Leading hospital lobby groups are asking the DC federal appeals court to affirm hospitals’ right to seek immediate review of any CMS determination that could impact future Medicare payments for providers, including determinations made under the disproportionate share hospital formula (DSH). The American Hospital Association joined the Federation of American Hospitals, America’s Essential Hospitals and the Association of American Medical Colleges in filing an amicus brief Monday (July 29) in support of the plaintiffs in Battle Creek Health System v Becerra.

AHA argues determinations made under DSH “can have profound impacts on hospitals’ Medicare payment amounts even with minimal adjustments, and for which a months- or years-long process to correct mistakes could have substantial and even irreparable consequences.”

According to AHA, Congress granted health organizations the right to ask for a review of final determinations regarding future payments when creating Medicare’s current prospective payment system. CMS has since attempted to narrow the category of determinations considered final, an effort AHA says is “untenable for hospitals.”

AHA’s legal action Monday follows a letter the lobby group sent last week to CMS requesting the agency keep its uninsured rate for calculating DSH payments at 8.7%. The rate is expected to be in the final inpatient hospital rule under review by the White House, but AHA worries CMS may lower the rate to 7.6% based on data it collects. The lobby group argues lowering the rate would decrease DSH payments, which in turn would keep hospitals from providing essential services.

The brief filed Monday is not the only one AHA has filed recently. Last week, the lobby group filed a brief requesting a federal court in Texas to vacate the Federal Trade Commission’s rule banning noncompetes. The same court issued a preliminary injunction earlier this month prohibiting FTC from enforcing the rule on parties involved in the lawsuit.