Source: https://openjurist.org/575/f2d/1367/american-association-of-councils-of-medical-staffs-of-private-hospitals-inc-v-a-califano-u-s
Timestamp: 2017-09-22 01:18:41
Document Index: 54569381

Matched Legal Cases: ['§ 10', '§ 701', '§ 1395', '§ 1491', '§ 405', '§ 1395', '§ 1331', '§ 405', '§ 1395', '§ 405', '§ 405', '§ 211', '§ 405', '§ 1491', '§ 405', '§ 1395', '§ 1395', '§ 405', '§ 1395', '§ 1361', '§ 101', '§ 7421']

575 F. 2d 1367 - American Association of Councils of Medical Staffs of Private Hospitals Inc v. A Califano U S
575 F.2d 1367
The AMERICAN ASSOCIATION OF COUNCILS OF MEDICAL STAFFS OF
PRIVATE HOSPITALS, INC., Plaintiff-Appellant,
We cannot reach the merits on this appeal: the dispositive question is whether subject matter jurisdiction existed. The district court followed this and some other Courts of Appeals by holding that jurisdiction existed under § 10 of the A.P.A., 5 U.S.C. § 701-06. See Ortego v. Weinberger, 5 Cir. 1975, 516 F.2d 1005; Dr. John T. MacDonald Foundation, Inc. v. Califano, 5 Cir. 1976, 534 F.2d 633, modified on rehearing, 1977, 554 F.2d 714, rev'd en banc, 1978, 571 F.2d 328; Bradley v. Weinberger, 1 Cir. 1973, 483 F.2d 410; Deering Milliken, Inc. v. Johnston, 4 Cir. 1961, 295 F.2d 856; Sanders v. Weinberger, 7 Cir. 1975, 522 F.2d 1167, rev'd sub nom., Califano v. Sanders, 1977, 430 U.S. 99, 97 S.Ct. 980, 51 L.Ed.2d 192; Brandt v. Hickel, 9 Cir. 1970, 427 F.2d 53; Brennan v. Udall, 10 Cir. 1967, 379 F.2d 803; Pickus v. United States Board of Parole, 1974, 165 U.S.App.D.C. 284, 507 F.2d 1107. The Supreme Court has now spoken to the contrary: "(T)he APA does not afford an implied grant of subject-matter jurisdiction permitting federal judicial review of agency action". Califano v. Sanders, 1977, 430 U.S. 99, 107, 97 S.Ct. 980, 985, 51 L.Ed.2d 192.
"Any institution or agency dissatisfied with any determination by the Secretary that it is not a provider of services, or with any determination described in section 1395cc(b)(2) of this title (concerning termination by the Secretary of certain agreements), shall be entitled to a hearing thereon by the Secretary (after reasonable notice and opportunity for hearing) to the same extent as is provided in section 405(b) of this title, and to judicial review of the Secretary's final decision after such hearing as is provided in section 405(g) of this title."
The question of review of decisions apparently precluded by § 1395ii has been considered by several courts. The cases, however, have always been slightly different from this case. They have involved actions by providers complaining of reimbursement decisions and procedures. The Court of Claims ruled that it had jurisdiction as to questions of law and constitutional claims under 28 U.S.C. § 1491. Whitecliff, Inc. v. United States, Ct.Cl.1976, 536 F.2d 347, cert. den. 1977, 430 U.S. 969, 97 S.Ct. 1652, 52 L.Ed.2d 361. The Court of Appeals for the Eighth Circuit held that it had jurisdiction over constitutional issues only. St. Louis University v. Blue Cross Hospital Service, 8 Cir. 1976, 537 F.2d 283, cert. den. 1977, 429 U.S. 977, 97 S.Ct. 484, 50 L.Ed.2d 584. In the Second and Seventh Circuits the Courts of Appeals have held that they have no jurisdiction, but that the Court of Claims does. South Windsor Convalescent Home, Inc. v. Mathews, 2 Cir. 1976, 541 F.2d 910; Trinity Memorial Hospital of Cudahy, Inc. v. Associated Hospital Service, Inc., 7 Cir. 1977, 570 F.2d 660.1
The Court en banc held that " § 405(h), incorporated into § 1395ii of the Medicare Act, precludes all review of the Secretary's decisions by federal district courts brought under § 1331". 571 F.2d at 331. The Court refused to find a distinction between § 405(h) in the Title II context and § 1395ii in the Medicare context because of the differing availability of review under § 405(g). Instead, it adopted the Supreme Court's position in Weinberger v. Salfi, 1975, 422 U.S. 749, 95 S.Ct. 2457, 45 L.Ed.2d 522, that neither statutory nor constitutional claims could be reviewed under the Act.
As a matter of statutory construction, the major difference between our case and MacDonald, as resolved by the en banc Court3, is that these plaintiffs complain not of a decision denying reimbursement but of a regulation which does not affect reimbursement. Salfi, relied upon by the Court en banc, shows that distinction to be unimportant. In Salfi widows brought a class action challenging on constitutional grounds the statute's failure to cover certain women. The Court gave a broad reading to the third sentence of § 405(h) and held that it was "more than a codified requirement of administrative exhaustion". 422 U.S. at 757, 95 S.Ct. at 2463. It then distinguished Johnson v. Robison, 1974, 415 U.S. 361, 94 S.Ct. 1160, 39 L.Ed.2d 389. In that case a challenge was brought to a provision concerning veterans' benefits. The Court held that review of a statutory limitation was not precluded by a section providing that decisions of the Administrator
38 U.S.C. § 211(a), quoted in Salfi, 422 U.S. at 761, 95 S.Ct. at 2465. The Court had found jurisdiction in Johnson, in spite of this language. The Salfi Court explained that while the Veterans' Administration statute precluded only review of decisions of the Administrator, § 405(h) extended to any action to recover on any claim. Thus, the fact that no administrative hearing or decision was involved in the instant case does not serve as a relevant distinction from MacDonald. This Court has decided that the Medicare Act withdraws jurisdiction from the district courts over actions like this one.
This particular suit cannot be brought in the Court of Claims. Its jurisdiction is founded on 28 U.S.C. § 1491, which was never part of the section 41 of title 28 mentioned in § 405(h). It has jurisdiction over claims against the United States, without limitation as to jurisdictional amount.5 That Court cannot provide the equitable or declaratory relief sought in this suit. United States v. Alire, 1868, 73 U.S. 573, 6 Wall. 573, 18 L.Ed. 947; United States v. Jones, 1886, 131 U.S. 1, 9 S.Ct. 669, 33 L.Ed. 90; United States v. King, 1969, 395 U.S. 1, 89 S.Ct. 1501, 23 L.Ed.2d 52. Nevertheless, the issue raised by the plaintiff could be heard by that Court if CMS can state a claim for damages or at least for nominal damages.6 Only the relief granted would be different, and Congress has power over the relief granted suitors against the United States and its officers.7
Many district courts have considered the effect of § 1395ii. In Mid Atlantic Nephrology Center, Ltd. v. Califano, D.Md.1977, 433 F.Supp. 23, Judge Thomsen held that, in the absence of any other judicial review, § 1395ii did not preclude federal question jurisdiction over a challenge to Departmental action. The court distinguished its case from most provider cases because the plaintiff was not making a claim for benefits, but instead was seeking injunctive relief "to compel HEW to abide by its own regulations". In Humana of South Carolina, Inc. v. Mathews, D.D.C.1976, 419 F.Supp. 253, the court found jurisdiction by reading § 405(h) as applying only after an administrative hearing. In St. Elizabeth Hospital v. Califano, E.D.Ky.1977, 441 F.Supp. 158, the court held that it had no federal question jurisdiction. In Chelsea Community Hospital v. Michigan Blue Cross, E.D.Mich.1977, 436 F.Supp. 1050, the court held that review of statutory issues was precluded. The court was troubled by the thought that jurisdiction for constitutional issues might be completely foreclosed. It assumed that jurisdiction existed and found the constitutional claims without merit. In Medical Center of Independence v. Califano, W.D.Mo.1977, 433 F.Supp. 837, the court held that it had no federal question jurisdiction over pre-1973 claims. The court also held that § 1395ii foreclosed mandamus jurisdiction under 28 U.S.C. § 1361. In Pacific Coast Medical Enterprises v. Califano, C.D.Cal.1977, 440 F.Supp. 296, the court held that the statute prevented review of statutory issues, but not constitutional issues. It held, however, that the issues cast by the plaintiff in due process terms were in fact statutory issues. That court found mandamus was unavailable because the case was not proper for such relief under the general standards applied to mandamus petitions. A unique approach was taken by the district court in Umedco, Inc. v. Califano, C.D.Cal., June 9, 1977, Civ. No. 76-104-HP. That court distinguished Salfi as applying only to beneficiaries' claims. It held that it should not apply to providers' claims, and found jurisdiction to consider any constitutional issues.
For example, violation of due process rights, standing alone, has been held to found a claim for nominal damages. Carey v. Piphus, 1978, --- U.S. ----, 98 S.Ct. 1042, 55 L.Ed.2d 252. This plaintiff also alleges that its members' time is being wasted in violation of their constitutional rights. Therefore, a successful action would also involve actual damages. We note the plaintiff alleged that more than $10,000 was in controversy
Congress could refuse to waive sovereign immunity at all, and deny all litigants against the United States any remedies. It may also restrict parties seeking to litigate certain claims to specified courts, even if the claims are of constitutional magnitude. See Yakus v. United States, 1944, 321 U.S. 414, 64 S.Ct. 660, 88 L.Ed. 834, where the Court held that a constitutional challenge to wage and price controls could not be brought in the Emergency Court of Appeals. Cf. Morris v. Gressette, 1977, 432 U.S. 491, 97 S.Ct. 2411, 53 L.Ed.2d 506, which held that the decision of the Attorney General under the Voting Rights Act was not subject to judicial review. The statute provided that review of changes in a state's electoral system was proper either through a declaratory judgment action in the District of Columbia, or through submission to the Attorney General. Congress may also limit the availability of equitable relief in federal courts to private parties in suits against other private parties. The Norris-LaGuardia Act, restricting the use of federal injunctions in labor disputes, is a prime example. 29 U.S.C. §§ 101-115. See Lauf v. E. G. Shinner & Co., 1938, 303 U.S. 323, 58 S.Ct. 578, 82 L.Ed. 872. Remedies against the government have been limited in the context of Selective Service cases, although those cases do not easily lend themselves to a consistent interpretation. See generally Federal Courts and the Federal System at 365-72. The federal courts are also barred from issuing injunctions against the collection of federal taxes. Litigants are left to either refund suits or suits in the tax court. 26 U.S.C. § 7421