NOT PRECEDENTIAL
UNITED STATES COURT OF APPEALS FOR THE THIRD CIRCUIT ____________
No. 16-1641 ____________
CHRIST THE KING MANOR, INC., BALDOCK ASSOCIATES, d/b/a Baldock Health Center; BONHAM NURSING CENTER; BRIARLEAF NURSING AND CONVALESCENT CENTER, INC.; BROOKMONT HEALTH CARE CENTER, LLC; CATHEDRAL VILLAGE; CPSR ASSOCIATES, LLC, d/b/a Mon Valley Care Center; ELLEN MEMORIAL HEALTH CARE CENTER-HONESDALE, INC.; GREENLEAF NURSING AND CONVALESCENT CENTER, INC.; HUMBERT LANE ASSOCIATES, d/b/a Humbert Lane Nursing and Rehabilitation Center; KINKORA PYTHIAN HOME CORPORATION; KUTZTOWN MANOR, INC.; PICKERING MANOR HOME; RHEEMS NURSING AND REHABILITATION, LLC; SIEMON NURSING HOME, INC., d/b/a/Siemon's Lakeview Manor Estate; CARBON-SCHUYKILL COMMUNITY HOSPITAL, INC. d/b/a St. Luke's Miners Memorial Geriatric Center; SOUTHWESTERN GROUP, LTD, d/b/a Southwestern Nursing Center; SUSQUEHANNA VALLEY NURSING AND REHABILITATION CENTER, LLC; WINDSOR, INC., d/b/a Snyder Memorial Health Care Center; 890 WEATHERWOOD LANE OPERATING COMPANY, LLC, d/b/a The Rehabilitation and Nursing Center at Greater Pittsburgh; 4114 SCHAPER AVENUE OPERATING COMPANY, LLC, d/b/a Presque Isle Rehabilitation & Nursing Center
v.
SECRETARY UNITED STATES DEPARTMENT OF HEALTH AND HUMAN SERVICES; ADMINISTRATOR OF THE CENTERS FOR MEDICARE & MEDICAID SERVICES; FRANCIS MCCULLOUGH, in his official capacity as Associate Regional Administrator- Region II Division of Medicaid and Children's Health Operations of the Centers for Medicare and Medicaid Services (CMS)
Christ the King Manor, Inc., Baldock Associates, d/b/a Baldock Health Health Care Center, Briarleaf Nursing and Convalescent Center, Inc., CPSR Associates, LLC, d/b/a Mon Valley Care Center; Ellen Memorial Health Care Center-Honesdale, Inc., Greenleaf Nursing and Convalescent Center, Inc., Humbert Lane Associates, d/b/a Humbert Lane Nursing and Rehabilitation Center, Kinkora Pythian Home Corporation, Kutztown Manor, Inc., Pickering Manor Home, Rheems Nursing and Rehabilitation, LLC, Siemon Nursing Home, Inc., d/b/a Siemon's Lakeview Manor, Carbon-Schuylkill Community Hospital, Inc., d/b/a St. Luke's Miners's Memorial Geriatric Center, Susquehanna Valley Nursing and Rehabilitation Center, LLC, 890 Weatherwood Lane Operating Company, LLC, d/b/a Rehabilitation and Nursing Center in Greater Pittsburgh, 4114 Schaper Avenue Operating Company, LLC, d/b/a Presque Isle Rehabilitation & Nursing Center, Appellants ____________
On Appeal from the United States District Court for the Middle District of Pennsylvania (D.C. No. 1-14-cv-01809) District Judge: Honorable John E. Jones, III ____________
Argued November 2, 2016
Before: HARDIMAN and SCIRICA, Circuit Judges, and ROSENTHAL,* District Judge.
(Filed: December 12, 2016)
Daniel K. Natirboff [Argued] Glenn A. Parno Capozzi Adler 1200 Camp Hill Bypass Suite 205 Camp Hill, PA 17011 Counsel for Plaintiffs-Appellants
Alisa B. Klein Jeffrey E. Sandberg [Argued] United States Department of Justice Civil Division 950 Pennsylvania Avenue, N.W. Washington, DC 20530 Counsel for Defendants-Appellees
* The Honorable Lee H. Rosenthal, Chief United States District Judge for the Southern District of Texas, sitting by designation.
____________
OPINION** ____________
ROSENTHAL, District Judge.
In 2008, the Department of Health and Human Services approved an amendment
to Pennsylvania's Medicaid plan for reimbursing private nursing homes for patient care
provided in 2008 and 2009. The amendment reduced the payments from what they
otherwise would have been. The nursing homes sued, challenging the amendment's
approval and seeking an order requiring adherence to the prior year's plan-reimbursement
formula. The District