404
Opinion of the Court
White, J., delivered the opinion of the Court, in which Rehnquist, C. J., and Blackmun, O'Connor, Kennedy, and Thomas, JJ., joined. Souter, J., filed a dissenting opinion, in which Stevens and Scalia, JJ., joined, post, p. 420.
Carel T. Hedlund argued the cause for petitioners. With her on the briefs was Leonard C. Homer.
Edward C. DuMont argued the cause for respondent. With him on the brief were Solicitor General Starr, Assistant Attorney General Gerson, Edwin S. Kneedler, Anthony J. Steinmeyer, John P. Schnitker, Susan K. Zagame, Darrel J. Grinstead, and Henry R. Goldberg.*
Justice White delivered the opinion of the Court.
As a means of providing health care to the aged and disabled, Congress enacted the Medicare program in 1965. See Title XVIII of the Social Security Act, 79 Stat. 291, as amended, 42 U. S. C. § 1395 et seq. Under the program, providers of health care services can enter into agreements with the Secretary of Health and Human Services pursuant to which they are reimbursed for certain costs associated with the treatment of Medicare beneficiaries. To operate the program, the Secretary issued regulations imposing limits on the amount of repayment based on a range of factors designed to approximate the cost of providing general routine patient service. The question before us is whether the Secretary must afford the six petitioning hospitals an opportunity to establish that they are entitled to reimbursement for costs in excess of such limits.
I
A
A complex statutory and regulatory regime governs reimbursement, rough description of which is necessary back-*Joel M. Hamme filed a brief for the American Health Care Association as amicus curiae urging reversal.
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