Government Motion To Dismiss Bagnall v. Sebelius

January 9, 2012
The lawsuit Bagnall et al. v. Sebelius, was filed on behalf of Medicaid beneficiaries who had been subject to an observation stay at a hospital, rather than being admitted. The plaintiffs alleged that the outpatient treatments offered during hospital observation services are basically the same as those furnished to inpatients, and should be considered inpatient services. The court dismissed the case on the grounds that the plaintiffs failed to state a claim upon which relief may be granted. The court stated that the case should also be dismissed because recognition of observation services as outpatient services comports . . .