Judge denies CMS hospital certification to Pennsylvania ophthalmology facility

A federal judge on Thursday denied Philadelphia-based Wills Eye Hospital's motion to be granted CMS hospital certification, according to the Philadelphia Business Journal.

The judge's order represents the latest development in Wills Eye Hospital's five-year legal battle to win certification, according to the report.

Here are five things to know about the judge's order.

1. U.S. District Judge Eduardo C. Robreno wrote in a 25-page memorandum CMS was in its legal right to deny Wills Eye Hospital certification as a qualified hospital in 2013. At the time, CMS argued the hospital did not provide enough inpatient care to qualify as a hospital under the agency's guidelines.

2. Wills Eye Hospital, which was previously a CMS designated hospital, dropped its designation in July 2006 when it sold its inpatient services business to Philadelphia-based Jefferson Health. Since then, the hospital has operated as an ambulatory care center.

3. However, Wills Eye Hospital has sought to regain certification following the completion of a $6.5 million renovation project, which included a four-bed inpatient unit, in 2013. Qualifying as a hospital would allow Wills Eye to charge more for certain procedures. The hospital's current designation as an ASC also prevents the organization from performing certain procedures, according to a report from The Inquirer.

4. In a statement to The Inquirer, Wills Eye Hospital said, "Having a designation as a hospital is a critical element in Wills' ability to provide inpatient care because Wills treats some of the most complex and difficult cases in the world. We have made no decision at this point about next steps, which could include seeking a review of the decision by the U.S. Court of Appeals for the Third Circuit."

5. Under CMS guidelines released in September, Wills Eye Hospital may still be able to receive hospital certification. The guidance states, "hospitals are not required to have a specific inpatient-to-outpatient ratio," meaning CMS' previous rationale for denying certification may not apply under the revised guidelines, according to The Inquirer.

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