UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF COLUMBIA
DEPARTMENT OF MEDICAL )
ASSISTANCE SERVICES OF THE )
COMMONWEALTH OF VIRGINIA )
)
Plaintiff, )
)
v. ) Civil Case No. 16-2008 (RJL)
)
UNITED STATES DEPARTMENT )
OF HEALTH AND HUMAN )
SERVICES, ) F I L E D
)
and ) SEP 3 0 2018
) Clerk, U.S. District & Bankruptcy
ALEX M. AZAR II, Secretary, ) Courts for the District of Columbla
U.S. Department of Health and )
Human Services )
)
Defendants. )
MEMORANDUM OPINION
(seprember§;/ 2018) [Dkt. ## 22, 24]
Plaintiff Department of Medical Assistance Services of the Commonwealth of
Virginia (“Virginia” or “plaintiff’) brings suit against the United States Department of
Health and Human Services (“HHS”) and Secretary Alex M. Azar II (collectively,
“defendants” or “the Government”), asking this Court to overturn a disallowance of
roughly $30 million in federal financial participation (“FFP”) payments to certain in-state
disproportionate share hospitals (“DSH”). The gravamen of Virginia’s complaint is that,
in its administration of DSH funding under Medicaid, HHS has violated the Administrative
Procedure Act (“APA”), 5 U.S.C. § 551 et seq. See Compl. 1111 58-63. Before this Court
1
are the parties’ Cross-l\/lotions for Summary Judgment. See Pl.’s Motion for Summary
Judgment [Dkt. #22] (“Pl.’s Mot.”); Defs.’ Cross-Motion for Summary Judgment [Dkt. #
24] (“Defs.’ l\/[ot.”). For the following reasons, the defendants’ motion for summary
judgment [Dl