Chinese Egg-Freezing Lawsuit Exemplifies Persistent Inequalities

Women have made giant leaps on the path to reducing inequalities based on sex in the past century. However, severe inequalities nevertheless persist throughout the world, and they are especially noticeable in the context of access to assisted reproductive technology and fertility care services. Last month, a 31-year-old woman in the People’s Republic of China brought a lawsuit against a hospital that refused to provide her oocyte cryopreservation (“egg freezing”) services. Why was she denied? Only because she was unmarried.

Beijing Obstetrics and Gynecology Hospital — the target of Teresa Xu’s lawsuit — was not the first hospital to deny her services. Chinese government regulations prohibit the provision of egg-freezing services to unmarried women. Some hospitals reportedly go further and deny married women egg-freezing services if they do not have … their husband’s consent. They do not, however, prevent a single man from freezing his sperm.

Xu describes her experience with the hospital as being particularly upsetting. Not only did her doctor refuse to help her medically, but also offered a little personal advice, suggesting that she really should hurry up and get married and have a child then. That’s not the kind of advice that any ambitious, empowered woman wants to hear. In any country.

Xu decided to take action. Not surprisingly, the case openly challenging a hospital’s decision to comply with government regulations regarding fertility care for unmarried women is the first of its kind in the country.

Reproductive Rights Are Complex. Especially In China.

While a women’s right to continue a pregnancy or not still divides our country, reproductive rights have an even more complicated layer in China. Only a couple years ago –- in 2016 -– the Chinese government lifted the long-standing One Child Policy that had limited most families in the country to no more than one child. That policy lead to extremes, including forced abortion and an acute gender imbalance to the tune of 30 million more men than women. Now, the decision to lift the policy has resulted in a significant number of hopeful parents looking for reproductive services as they consider their family-building options.

Not everyone can have kids the old-fashioned way, though. And surrogacy is not permitted in China at all, which results in a huge demand for such services in other countries, including the United States. Similarly, as women like Xu are denied access to egg-freezing services, many seek out services in other countries to freeze their eggs. But the high costs, $10,000 to $20,000 or higher, are prohibitive for many.

Egg-Freezing Backlash

Egg-freezing providers have been under fire here in the United States for a concern they are overselling their promises to prospective patients. These type of concerns generally sound in the possibility that preservation gives a false sense of security to women who want to work hard on their careers now and have kids later.  One marketing slogan put a fine point on this controversy: “Focus on your career: Extend your fertility.” The promises may turn out fine for some people, but an absolute confidence in egg freezing would be misplaced. Egg freezing, like all assisted reproductive technology procedures, does not have a perfect success rate. The rate can in fact be surprisingly lower than participants might expect. While egg freezing does offer a chance of success at having a genetically linked child later in life, it could also deceive women into thinking that they will be fine having kids down the road, while the opportunity present in more fertile years pass by.

One of the more famous cases of egg-freezing disappointment is that of Bridgette Adams. In her late 30s, she was riding the wave of a successful career in the tech world. At the time, she even appeared on the cover of Bloomberg Business with the headline “Freeze Your Eggs, Free your career,” touting the decision to have her eggs frozen. She openly discussed her plans to focus on her career, for now, and find Mr. Right eventually, and then start a family when the timing was right.

As she approached 45, and Mr. Right had yet to come on the scene, Adams decided that it was time to go ahead and attempt to conceive with her frozen eggs. She had 11. The Washington Post article details what happened next: “Two eggs failed to survive the thawing process. Three more failed to fertilize. That left six embryos, of which five appeared to be abnormal.”

She was left with a single viable embryo. That embryo was transferred, but devastatingly for Adams, failed to produce a pregnancy. Adams still speaks publicly that she does not regret the decision to freeze her eggs. However, her story serves as a reminder that the procedure is not a guarantee.

Of course, even if the egg freezing doesn’t have a perfect success rate, and is being oversold by some, women like Xu obviously still deserve the opportunity to balance the risks and rewards and make the choice on their own.

What Will Xu’s Lawsuit Accomplish?

Legal commentators have criticized the lawsuit’s target as the hospital, which is only following the dictates of the one-party government, controlled by the Communist Party of China (CPC). They suggest that for that reason, Xu’s lawsuit is unlikely to find success.

But that’s only if you define success to mean ultimately winning the legal case. Others suggest that the national conversation and attention surrounding the issue may be success in itself. This case, and the public discussion surrounding the issues of inequality and access to fertility care, may be the catalyst needed for a reconsideration of the outdated and oppressive regulations. It’s at least a start.


Ellen Trachman is the Managing Attorney of Trachman Law Center, LLC, a Denver-based law firm specializing in assisted reproductive technology law, and co-host of the podcast I Want To Put A Baby In You. You can reach her at babies@abovethelaw.com.

COURT WATCH: Transparency and Accountability – The Zimbabwean

Theme for the 2020 Legal Year:

“Transparency and Accountability”

Introduction

On Monday 13 January 2020 Chief Justice Luke Malaba delivered his speech for the official opening of the 2020 Legal Year in Harare while the Deputy Chief Justice (DCJ) Elizabeth Gwaunza was delivering a similar speech in Bulawayo emphasizing on the need for open justice and accountability on the part of judicial officers.  The theme for this year is “Judicial Transparency and Accountability”. It resonates well with last year’s theme of consolidating the rule of law. The purposes and objectives of the rule of law as a foundational value and principle cannot be achieved by the guarantee and application of the fundamental principle of judicial independence alone.

Whilst an independent Judiciary is the essence of the rule of law, it is the same Judiciary which is required to act in a transparent and accountable manner in the exercise of all judicial functions.

The Open Court Principle

The open court principle requires that court proceedings presumptively be open and accessible to the public and to the media. Public access to the courts guarantees the integrity of judicial processes by demonstrating “that justice is administered in a non-arbitrary manner, according to the rule of law.” Openness is necessary to maintain the independence and impartiality of courts. It is integral to public confidence in the justice system and the public’s understanding of the administration of justice. Moreover, openness is a principal component of the legitimacy of the judicial process and why the parties and the public at large abide by the decisions of courts.

Transparency and Accountability

Chief Justice Malaba said Transparency and accountability foster within the public a sense of ownership and trust in government. The concepts reinforce the notion that judicial officers are employees of the people. Public decision-making processes ought to reflect the will of the people.It is for this reason that section 162 of the Constitution provides that judicial authority derives from the people of Zimbabwe. In that regard, citizens are major stakeholders in the business of the courts. He added the courts must therefore, from time to time, account to the citizens on how they are performing their functions.

In her address, the DCJ emphasised the importance of transparency and accountability of the judicial system. She mentioned that the independence of the Judiciary is crucial for the “public to have trust and confidence in the Judicial system”. She then went on to highlight the judiciary’s commitment to independence and how such independence is a “fundamental principle of constitutionalism and the foundation of the rule of law”.

Live Broadcast of Cases

In line with the Open court principle, Justice Malaba revealed that cases of public interest will now be broadcast live so as to provide the general populace access to the court proceedings. He said the broadcasting of court proceedings will also help bridge the information gap with very few people willing to attend the courts and in some cases unable to attend.

The Chief Justice said the move was intended to “foster public trust and confidence in the court system by debunking the myth that court proceedings are esoteric and that courts want to mask their decisions”.

The Chief Justice however noted that there would be “strict regulation” of the broadcasting process to protect the dignity of proceedings.

The DCJ also announced in Bulawayo the JSC’s wishes to have more cases which are of public interest to be broadcast live.  “This trajectory”, she says, “speaks to the Judiciary’s commitment to transparency and accountability”.

This is a positive move and the only thing that’s not clear yet is how the authorities will come to a decision on whether a case is deemed as being of national interest or not.

Performance Management

The Chief Justice announced that the JSC has introduced a performance measurement system for judicial officers and their courts. He said the JSC has set up a performance management and Training Committee headed by the DCJ and the terms of reference for the committee includes engaging judicial officers and stakeholders to come up with an acceptable and standardised performance measurement system for judges.

The DCJ in Bulawayo highlighted the need for  “courts to provide reasons for their decisions through writing and publishing judgments.”  She states the need to have reasoned judgments promotes fairness in the judicial systems. The DCJ then pointed out that “from a constitutional point of view, the provision of reasons is an important mechanism for making administrators accountable to the people they serve and for achieving a culture of justification.”

It has also been mentioned in the speeches that the Judiciary has put in safety nets that will ensure that judgments will be delivered without undue delay. Such safety nets can be found in the 2019 Magistrates Code of Ethics and the 2012 Code for Judges. The DCJ mentions that a system to measure judicial officers’ performance is under consideration as this is meant to “demystify the age old misconception that judicial independence is synonymous with unaccountability.”

Anti-corruption initiatives

The Chief Justice reported JSC has made progress in the setting up of specialised Anti-Corruption courts in the magistrates courts and in the High Court. He said the JSC has reached out to their Ugandan counterparts to seek assistance in the professional development of local judicial officers.  Uganda has been running specialised anti-corruption courts for the last ten years.

The Deputy Chief Justice urged the public to join in the fight against corruption and encouraged responsible forces such as the National Prosecuting Authority (“NPA”), the Zimbabwe Anti Corruption Commission(“ZACC”) and the Zimbabwe Republic Police (“ZRP”) to carry out thorough investigations prior to arrest in order to avoid  such accusations such as the “catch and release”.

Integrated Electronic Case Management system

The JSC is in the process of introducing an integrated electronic case management system that the Chief Justice believes affords “great potential to automate court services and proceedings as a way to make the administration of courts more efficient, transparent and accountable”. The CJ says the system will be elaborate and consist of the following exciting features intended to aid court administration and case management-

  • Increased public access to information

The system will allow the public to find out the status of cases through electronic platforms viewable from public kiosks located in the registries of the courts. Those who are not computer literate will still get assistance from the court’s IT personnel to access the information they need electronically.

The DCJ reiterated the JSC’s commitment to transparency and accountability. The website will continue to disseminate information and be up to date with the activities of the JSC. The DCJ also mentioned commitment to improving the website.

  • Reduction of case backlogs

The system will provide judicial officers with a dashboard meant to track the status of every case on the judicial officer’s cause list. It will provide information, such as analysis of the age of cases, deadlines and case stages that require court action. This information will give Judges a more precise picture of the status of their cases.

  • Introduction of virtual court sittings

Virtual court sittings transform physical court hearings into automated trial fora. This will enable parties to make submissions to the Judge without the need of having to appear physically in the courtroom.

The e-filing component of the system will also enable litigants to file pleadings and other court documents electronically from anywhere in the country. The procedure will reduce the cost of litigation, as expenses such as travelling will be curtailed.

Open Day Concept

In line with the theme , the Judicial Service Commission (JSC) has put the open day as a permanent event on its calendar. Open days are days where departments in the Judicial Service Commission will answer questions from the members of the public and disseminate information relating to activities and operations of the various JSC departments. The JSC has set the 10th of June of each year as the Judicial Service Commission Day, a day during which members of the public and all stakeholders will be invited to visit court stations near their locations throughout the country to learn more about how the courts operate.

Infrastructure and Development Projects

The DCJ highlighted that both the Gwanda and Lupane construction of Magistrates Courts. The DCJ also acknowledged residents from places like Bulilima, Insiza, Umguza and Mangwe that have to travel long distances to gain access to justice. She mentioned that the JSC has made it a priority for the Commission to establish at least one resident court in each district in future.

Performance of the court and Conditions of Service

Overall, the CJ and DCJ gave a statistical account of the progress of the courts. The analysis showed how much backlog the relevant courts had, how many cases they received and how many they were able to discharge during the course of 2019. The data shows an improvement in how courts have managed to discharge and deal with cases efficiently. Conditions of service for members of staff are a sensitive area because a demotivated workforce will not produce desired results. Salaries of judicial officers remain divorced from the reality of the importance of the judicial functions they perform. Efforts to fight corruption must be complemented by awarding judicial officers and their support staff a living wage to prevent them from being tempted into accepting bribes or other undue considerations.

Looking Forward

The DCJ reminds us of the Constitutional requirement that this year, the Supreme Court and the Constitutional Court will formally separate. Further, she hopes the High Court Rules and Commercial Court rules will be gazetted this year.

The introduction of the open court system is a very welcome idea. Open court serves democracy as much as it serves justice. It allows citizens to review the outcomes of current laws and to advocate to their representatives when they believe certain laws need to be reformed. This is an essential feature of a flourishing democracy.

Veritas makes every effort to ensure reliable information, but cannot take legal responsibility for information supplied.

Post published in: Featured

An Interview With Kevin Rosenberg Where He Explains How He Successfully Discharged His Student Loans In Bankruptcy Court

Last week, the Wall Street Journal featured the story of Kevin Rosenberg (also covered here), a former attorney who did what every student loan debt slave thought was almost impossible — he convinced the bankruptcy court to discharge his student loans in full.

What’s amazing about Rosenberg’s story is that he did this on his own without the assistance of an attorney. I reached out to him, and he was kind enough to grant an interview where he explains what led to his decision to file bankruptcy and how he handled the adversary process on his own.

Please tell me about yourself and what you did after graduation.

While I was serving in the naval officer’s program, I was told that those who were leaving were expected to go to graduate school. Based on my interests and background, I thought that going to law school and being a lawyer would be the right fit for me. As an officer, I was used to preparing and processing paperwork. I also wanted to help people and make good money.

It turns out that after my first year of law school, I found out that as a lawyer, I will either help people or make good money. I also realized that I was not going to enjoy doing legal work so I considered doing something else. I applied for jobs in the business sector, but I was mostly ignored. And the few employers who contacted me said that they were surprised that I did not want to be a lawyer since they thought lawyers made large salaries. It was then I realized that my law school (and others) were not truthful about nonlegal employment opportunities for those with law degrees.

So after graduation, I pursued a number of business ventures. I was a street vendor in Brooklyn, was a real estate broker, and ran an outdoor-gear rental business.

In 2016, with the help of angel investors, I opened a retail shop. Initially, the business was profitable. But business slowed as more people were turning online to shop instead of going to brick-and-mortar stores. Due to continuing losses, I had to shut down the business in 2017.

To make things worse that year, I underwent back surgery and was in rehab for one year. During that time, I could not move or lift heavy objects. As a result I was unable to devote myself to my business, which was a contributing factor to the closure.

Sounds like you had ups and downs over the years. How did you handle your student loan payments during those times?

I was unable to pay the monthly payments under the standard monthly plan so I contacted the lenders to try to work out a payment plan that I can afford based on the circumstances. The various student loan servicers who handled my account pushed me to be on forbearance which meant I didn’t have to pay temporarily but the interest grew in the meantime. Later, they switched me to an income-based repayment plan.

The private lenders set up a payment plan where I started with a low amount per month which increased after every year. However, there were times I was unable to pay because I did not have the money and so I defaulted. The lenders then sued and got a judgment against me which later showed up on my credit report.

Basically, I paid what I could based on how much I made at the time. At one time, I was making good money and used a large portion of it to try to pay down the loans. But most of the time, I could only pay what I can afford after basic living expenses.

What made you consider bankruptcy?

Based on everything that has happened and thinking about the future, I concluded that there was no realistic way I could pay off my student loans in full. Also, since the judgment from the private loan lenders affected my credit, it would be near impossible to obtain a loan from a bank. This made it impossible to expand my business or refinance my existing loans.

What was your total student loan debt at the time of your bankruptcy?

In total about $400,000. $220,000 were federal loans and $180,000 were private loans.

Were you aware that the law makes it more difficult to discharge student loans compared to other debts?

I read that it was not easy to show undue hardship in order to discharge student loans in bankruptcy. Not only that, you have to start an adversary proceeding in the bankruptcy court which is similar to filing a lawsuit. This made my case more complicated than a typical bankruptcy filing.

Did you try to retain a bankruptcy attorney to represent you?

Yes, but the attorneys I talked to said that costs would be between $25,000 to $40,000, and I could not afford that.

Did the loan companies offer to settle?

I was able to settle my private student debts in full. However, Navient, the loan servicer for my federal loans, was not willing to budge. They would only suggest that I enter into an income-based repayment plan.

What made you decide to go to the bankruptcy court on your own?

I researched the Brunner test which sets out the elements that needs to be met to show undue hardship which will discharge the student loans in full. After researching, including reading the case law, I believed that I met the standard. Finally, I had nothing to lose at this point.

So tell me about the filing the petition and starting the adversary process.

I filed the Chapter 7 bankruptcy petition on March of 2018 and then started the adversary proceeding in June 2018. I was required to undergo the credit counseling seminar and then my case was assigned to a bankruptcy trustee.

I started the adversary proceeding by filing a complaint with the court using templates I found online. ECMC filed an answer and then discovery proceedings began.

Note: Some bankruptcy court websites have templates for filing an adversary complaint. For example, this is a template that can be used in the Middle District of Florida.

So what happened during the discovery process?

For nonlawyers, discovery is the process where each party gathers information from the other. I asked ECMC to provide me with copies of my entire payment history, all internal communications concerning my file, and copies of loan documents.

ECMC asked for copies of my tax returns, my financial information, and my employment history. I provided copies of all of them.

They also deposed me and I spoke with one of their employment experts.

The employment expert concluded that I could have taken a paralegal job, with some being paid over $100,000 per year. The problem was that those high-paying paralegal jobs required many years of experience and was in specialized fields such as mergers and acquisitions. There was no way I could have qualified for those jobs.

Has ECMC (or anyone else) done anything to make the adversary process difficult for you?  ECMC never turned over the documents/info I requested even after the judge ordered them to do so. They kept saying that those documents were from a prior party in interest, and I argued that if they now own the loan they need to be able to produce the documents. They gave me a data dump of around 150 pages that was basically in their company code and was practically undecipherable. From the beginning I tried to settle for an amount that I knew I could pay off in 10 years and they refused to budge.

So what led to the judge’s decision?

Over a year later, and a few months before the judge’s decision, she cancelled discovery. Both ECMC and I filed our summary judgment motions as there were no factual disputes. So I wrote the summary judgment motion arguing why I met the Brunner test: I cannot maintain a minimal standard of living based on current income and expenses, why my current financial condition is likely to persist for a significant portion of the repayment period, and that I made good faith efforts to repay.

So you must be happy with the judge’s decision?

I would say I feel more relieved than happy.

Are you ready in case ECMC appeals the decision?

I have not heard from ECMC about whether they will appeal. But since the decision was made public, I have been offered free representation by attorneys and advocacy groups in case they do. My research shows that the chances of reversal on appeal are very low, and I’m sure ECMC is aware that an affirmance from an appeals court will set future precedent.

In your opinion, do you think that most people can handle the adversary process on their own without an attorney? Yes, thanks to templates available online. It basically comes down to telling and proving your story and why you meet the requirements of the Brunner test. My pleadings are public but to make it easier for debtors representing themselves I’m happy to send them to a debtor’s advocacy group helping people like myself. That being said, I don’t consider myself a lawyer and my pleadings are far from perfect. I focused on telling my story in plain language and used case law that I found via Google, not Westlaw or Lexis, which I didn’t have access to. I’m sure my citation format was not up to law firm standards but it got the point across.

Student loan forgiveness is a sensitive and divisive topic. Is there anything you would like to say to those who think you should pay your debt in full?

I believe the judge made the fair and right decision based on my life struggles. I lived minimally. I rarely ate out, never traveled except for work and was living paycheck to paycheck. I was constantly behind on rent. I’m 46 and because of these loans, I am unlikely to have a long-term relationship. I am not asking for a handout, but instead a second chance. I don’t see why student loans have to be treated so harshly compared to other debts.

I chose bankruptcy because I had no other choice. I tried to work with the lenders but they gave me no other options. I am hoping that this ruling will force them to work with debtors instead of intimidating them.

I want to thank Kevin Rosenberg for sharing his story and I wish him well.


Steven Chung is a tax attorney in Los Angeles, California. He helps people with basic tax planning and resolve tax disputes. He is also sympathetic to people with large student loans. He can be reached via email at sachimalbe@excite.com. Or you can connect with him on Twitter (@stevenchung) and connect with him on LinkedIn.

Litigation Associate Opportunity in Boston

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This is the perfect opportunity for a litigation associate with two (2) to five (5) years of experience with the litigation practice of a large firm to gain hands-on substantive experience in both domestic and cross-border disputes. The firm is known around the world for representing high profile clients in “bet the company” disputes.

If you currently feel “lost” within a large group of junior litigation associates all working on small pieces of large litigation matters and wish to gain more substantive experience, this may be the place for you. A high level of academic achievement from a leading US law school and admission to the Massachusetts bar is required.

To learn more, submit your resume or send a note to jobs@kinneyrecruiting.com.

Oh Look, They Arrested Michael Avenatti

Michael Avenatti (Photo by Jennifer S. Altman/For The Washington Post via Getty Images)

Getting arrested right outside of your own disciplinary hearing is the definition of exiting the frying pan into the fire.

Yesterday, 2018 Lawyer of the Year Michael Avenatti appeared before the state bar to discuss the charge that he pilfered $840K from a client’s settlement funds for personal use. Little did he know when he headed out that he wouldn’t be returning home.

During a break, federal prosecutors had a quick chat with the Avenatti team and arrested him for violating the terms of his release. The Daily Beast reports that an Avenatti attorney said that the arrest stemmed from an unrelated criminal matter in Santa Ana but declined to provide details. Quoting a separate Avenatti lawyer, Fox News reports that Avenatti will have a bail hearing at 2 pm Pacific today.

Avenatti, who appeared on Above the Law’s podcast last year, has had a wild couple of years from storming to prominence representing a porn star clashing with Trump to flirting with a White House run himself to facing multiple federal criminal charges to this — and that’s not even counting some of the stuff along the way.

We’ll learn more this afternoon.

Michael Avenatti Arrested by Feds at California State Bar Hearing [Daily Beast]
Avenatti arrested by IRS agents during California Bar Association hearing [Fox News]

Earlier: Michael Avenatti Charged With… A Whole Bunch Of Stuff Out Of Multiple USAOs
Michael Avenatti Charged With… A Whole Bunch MORE Stuff
Above The Law’s 2018 Lawyer Of The Year Contest: The Winner!
The ATL Michael Avenatti Interview


HeadshotJoe Patrice is a senior editor at Above the Law and co-host of Thinking Like A Lawyer. Feel free to email any tips, questions, or comments. Follow him on Twitter if you’re interested in law, politics, and a healthy dose of college sports news. Joe also serves as a Managing Director at RPN Executive Search.

Morning Docket: 01.15.20

(Photo by Win McNamee/Getty Images)

* President Trump is assembling a legal “Dream Team” to defend him in his impeachment trial. [NPR]

* A California lawyer has trademarked a moniker used by Meghan Markle and Prince Harry. Quite the entrepreneur. [Fox Business]

* Jay-Z’s lawyer has filed a lawsuit in support of Mississippi prisoners. Since Jay-Z taught us all about the Fourth Amendment in 99 Problems, this is not surprising. [NBC]

* The New York Attorney General is investigating whether the MTA is targeting people of color for NYC subway fare evasion summonses. [Politico]

* The “Bridgegate” matter has finally made its way to the Supreme Court, and the justices seem skeptical of the government’s case. [Fox News]


Jordan Rothman is a partner of The Rothman Law Firm, a full-service New York and New Jersey law firm. He is also the founder of Student Debt Diaries, a website discussing how he paid off his student loans. You can reach Jordan through email at jordan@rothmanlawyer.com.

Sometimes Biglaw Should Be More Passive-Aggressive — See Also

Associate Wishes Biglaw Was A Thankless Job: Or at least one punctuated with some periods of finality.

Alcohol Police To The Rescue: Linklaters has sober chaperones for their drinking parties.

What’s So Bad About Clickbait?: Larry Lessig sues the Times.

Game Of Thrones May Be Gone: But its terrible legal takes continue.

More On Kirkland’s Non-Equity Situation: We talk about it in podcast form if you want your ATL content faster and while you commute.

A Judge And A Hero

What fictional judge made their debut in comics in 1977 and has appeared in multiple media formats including movies, novels and video games?

Hint: The character got their start in comic books, and in 2011, IGN ranked them 35th among the top 100 comic book heroes of all time.

See the answer on the next page.

Non-Equity Means Non-Partner

More and more firms are adopting a non-equity partner tier, delaying equity consideration while extracting maximum value from high billing but relatively lowly paid senior attorneys tied to the job by the dangling hope of a future promotion that may never arrive.

Hospitals sue CMS again over site-neutral payments – MedCity News

Hospitals once again sued the Centers for Medicare and Medicaid Services over its site-neutral payment policy. The final rule reduced Medicare reimbursement rates for procedures conducted in hospital outpatient departments, bringing them closer to what CMS currently pays for procedures conducted in-office and at ambulatory surgical centers. The policy is expected to save Medicare an estimated $800 million in 2020.

The American Hospital Association and Association of American Medical Colleges filed suit against CMS on Monday, saying CMS’ adjustments were unlawful and flouted a judge’s previous ruling against the cuts. The two groups had previously sued over site-neutral payments in 2019.

In September, U.S. District Court Judge Rosemary Collyer ruled that CMS had overstepped its statutory authority, noting changes to payments must be budget-neutral and could not target specific services. Because of that ruling, CMS will have to repay hospitals the difference for 2019, to the tune of roughly $380 million. However, Collyer’s ruling does not apply to the planned reductions in 2020.

“The 2020 Final Rule is no less an impermissible flex of regulatory authority than the 2019 Final Rule, and should meet the same fate,” AHA and AAMC stated in the complaint.

They added that if the rule is left in place, hospitals “…may have to make difficult decisions about whether to reduce services in response to the lowered payment rate. This is particularly troubling for hospitals already operating at low or negative margins.”

While hospitals have voiced opposition to the changes, some medical groups support them. The American Medical Association previously released statements in support of site-neutral payments, but with the stipulation that they should not result in a total reduction in Medicare payments.

“Medicare physician payment has not kept pace with the actual costs of running a practice,” the AMA wrote in a 2019 issue brief, seeking a reevaluation of payments for in-office procedures.

The Department of Health and Human Services is appealing the 2019 ruling to the U.S. Court of Appeals for the District of Columbia Circuit.

Photo credit: zimmytws, Getty Images