Hackensack Meridian sues feds claiming underpayment, citing new Supreme Court ruling

At least one major New Jersey institution wasted little time to act on the U.S. Supreme Court's major ruling last week that overturned the so-called "Chevron Doctrine," making it easier now to challenge federal regulators in court.

Hackensack Meridian Health, which operates 18 hospitals across New Jersey, has sued the Centers for Medicare and Medicaid Services, saying faulty reimbursement calculations have cost at least three of its hospitals nearly $600,000 combined.

The lawsuit was filed in federal court in Washington on Friday just hours after the Supreme Court handed down one of its most significant decisions of the term that severely limits the power of federal regulators.

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In a 6-3 vote along ideological lines, the court's conservative majority overturned the 1984 landmark Chevron v. Natural Resources Defense Council decision that for 40 years guided courts to side with a federal agency’s interpretation of a law so long as it’s a reasonable understanding of what Congress intended.

Critics say the ruling diminishes the role of experts, especially scientists, who help craft complicated regulations based on a law. Supporters say it does away with government overreach and instead allows a level playing field in court when a dispute arises.

Hackensack Meridian's lawsuit cites the ruling on its second page. "With the Chevron deference overruled, courts may no longer routinely uphold the decisions of agencies in technical fields simply because of the complexity of the statutory schemes they oversee," the lawsuit reads.

It calls Secretary of Health and Human Services Xavier Becerra's interpretation of statutes "irrational and unlawful" and argues those interpretations have deprived the network's hospitals "of the reimbursements they are due."

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The lawsuit said CMS's reimbursement calculations for Hackensack University Medical Center, Jersey Shore University Medical Center and Raritan Bay Medical Center underpaid the hospitals by $584,000 in 2016 alone.

A spokesperson for CMS said Wednesday that agency officials do not comment on pending litigation.

This article contains information from USA Today.