Dist. Ct. did not err in dismissing plaintiffs’ action, alleging that defendants-Indiana state surveyors, who conducted interviews with residents of one of plaintiffs’ care facilities, committed various constitutional violations that led to termination of plaintiffs’ Medicare agreement with U.S. Secretary of Health and Human Services. Plaintiffs had failed to exhaust their administrative remedies by seeking final decision by Secretary regarding termination of plaintiffs’ Medicare provider agreement prior to filing instant lawsuit, which was required under 42 USC section 405(g). However, Dist. Ct.’s dismissal should have been without prejudice. Also, Dist. Ct. lacked jurisdiction to act on govt.’s appeal of Bankruptcy Ct. order that originally enjoined govt. from terminating Medicare agreement during pendency of plaintiffs’ bankruptcy reorganization and completion of administrative appeals of said termination, where Bankruptcy Ct. had dissolved said injunction prior to time Dist. Ct. had ruled on matter. As such, Dist. Ct. should have dismissed govt.’s appeal as moot.
Federal 7th Circuit Court
Civil Court
Medicare