Practice & Background

Stephanie A. Webster’s practice focuses on challenging agency action under Medicare, Medicaid and other federal agency programs. She represents hospitals, health systems and other clients in cutting-edge administrative and federal court litigation, and counsels them regarding complex regulatory and compliance issues.  Ms. Webster formerly served as an attorney for the Centers for Medicare and Medicaid Services (CMS), Division of the Office of General Counsel for the U.S. Department of Health and Human Services (HHS). She has been recognized as a leading health care lawyer by Law360, Chambers USA and Nightingale’s Healthcare News.

Representative Matters

Ms. Webster’s recent engagements include:

  • prevailed in a significant appeal affirming the invalidation of a Medicare rule on DSH that fundamentally changed payment calculations without proper notice (Allina Health Services v. Sebelius, 746 F.3d 1102 (D.C. Cir. 2014))
  • representing hundreds of hospitals as co-counsel (including argument) in lead federal court case challenging 0.2 percent reduction to hospital payment rates made in 2014 in connection with “two-midnight rule” (Shands v. Burwell, Case No. 14-263 (D.D.C.))
  • serving as co-counsel in thousands of appeals for more than 700 hospitals in challenges to a Medicare budget neutrality factor accounting for the impact of the wage index rural floor, including the lead case that successfully overturned the government’s erroneous methodology and that led to largest ever Medicare litigation settlement (Cape Cod Hospital v. Sebelius, 630 F.3d 203 (D.C. Cir. 2011))
  • representing large academic medical centers on compliance issues relating to the 340B drug pricing program, including a Congressional investigation
  • leading challenge to new CMS policy that purports to preclude review of the LIP adjustment to Medicare payments for inpatient rehabilitation services challenging error to calculation of wage index for hospitals in Orlando, Florida
  • representing hospitals challenging the exclusion of Tennessee waiver days from the Medicare DSH calculation in the 6th Circuit Court of Appeals
  • serving as co-counsel in litigation challenging the validity of CMS Ruling -1498-R
  • advising and representing clients in Medicare coverage appeals
  • representing hospitals in disputes involving denial of sole community hospital status
  • counseling transplant center in connection with federal investigation of off-label drug prescribing practices
  • representing health system in administrative and federal court challenges to retrospective correction of rehabilitation facility outlier payments
  • advising children’s hospitals on Medicaid DSH and supplemental payment questions
  • negotiating a favorable settlement for a large teaching hospital in multiyear appeals challenging the denial of Medicare reimbursement for medical education costs incurred for residents’ training in primary care settings
  • providing legal and strategic advice to health care providers with Recovery Audit Contractor (RAC) and Medicaid Integrity Contractor (MIC) audit issues and appeals
  • serving as co-counsel in the first cases ever decided by the Provider Reimbursement Review Board (PRRB) and federal district court requiring the correction of systemic errors in the calculation of the Medicare Part A/SSI fractions determining hospital DSH payments (Baystate Medical Center v. Leavitt, 5454 F.Supp.2d 20, amended, 587 F. Supp.2d 37 (D.D.C. March 31, 2008))
  • obtaining the first decision from the PRRB overturning the exclusion of labor and delivery days from the Medicare DSH payment calculation
  • playing key role in the initial one of 270 federal court actions to compel the reopening of DSH payment determinations for more than 600 hospitals, which included defeating the U.S. Solicitor General’s petition for review of a D.C. Circuit decision that created a circuit split on a key Medicare reimbursement question and was alleged by the government to involve $2.8 billion (In Re Medicare Reimbursement Litigation, Baystate Health System, et al. v. Thompson, 309 F.Supp.2d 89 (D.D.C. 2004), aff’d, 414 F.3d 7 (D.C. Cir. 2005), cert. denied, 126 S. Ct. 1672 (2006))
  • securing multimillion dollar settlement for leading academic medical center for GME payments stemming from training of physicians in advanced medical fellowships
  • representing a children’s hospital in the first and only proceeding before the PRRB involving payment under the Children’s Hospital GME Program.

Community Involvement

Ms. Webster is active in a number of health care and legal organizations, including:

  • Advisory Council, Jayne Koskinas Ted Giovanis Foundation for Health and Policy
  • American Health Lawyer Association (Chair, Children’s Hospital Affinity Group of the In-House Counsel and Teaching Hospital and Academic Medical Center Practice Groups)
  • Healthcare Financial Management Association
  • American Bar Association
  • Women’s Bar Association of the District of Columbia.

Ms. Webster also serves on the Advisory Board of the Bureau of National Affairs Medicare Report.

Awards & Accolades

  • Recognized by The National Law Journal in its 2014 Litigation Trailblazers & Pioneers as one of 50 “people who have made a difference in the fight for justice” for her outstanding work in representing hospitals in Medicare reimbursement disputes
  • Chambers USA: America’s Leading Lawyers for Business in Health Care (2014-2017)
  • Recognized by Washington, D.C. Super Lawyers in the health care practice area (2012-2016)
  • Recognized by Washingtonian magazine as a top lawyer in the category of health care (2013)
  • Law360 MVP (2013 and 2014) for Health Care
  • “Outstanding Healthcare Litigators,” Nightingale Healthcare News, 2004
  • CMS Administrator’s Award for achievement and dedication in work on the State Children’s Health Insurance Program (SCHIP) regulation
  • Outstanding Law Student Award by the National Association of Women Lawyers
  • Willis Ritter Endowed Scholarship (for character, honor and integrity), University of Virginia School of Law.

Speaking Engagements

  • PRRB Appeals: Current Challenges, American Health Lawyers Association Institute on Medicare and Medicaid Payment Issues (March 30, 2017)
  • PRRB Appeals: Current Challenges, American Health Lawyers Association Institute on Medicare and Medicaid Payment Issues (April 14, 2016)
  • PRRB Appeals: Current Challenges, American Health Lawyers Association Institute on Medicare and Medicaid Payment Issues (March 26, 2015)
  • PRRB Appeals: New Challenges, American Health Lawyers Association Institute on Medicare and Medicaid Payment Issues (March 27, 2014)
  • DSH Cuts: How Close to the Bone?, American Health Lawyers Association Practice Group Webinar (October 31, 2013)
  • The 340B Drug Pricing Program, American Health Lawyers Association Practice Group Webinar (June 17, 2013)
  • What Do Walmart, Texas Children’s Hospital, and Pro Bono Have in Common? Understanding the Medical-Legal Partnership Model, American Health Lawyers Association Practice Group Roundtable Discussion (June 14, 2013)
  • PRRB Appeals: Making the Process Work for You, American Health Lawyers Association Institute on Medicare and Medicaid Payment Issues (March 21, 2013)
  • The New PRRB Rules: Tips to Avoid Common Pitfalls, American Health Lawyers Association Institute on Medicare and Medicaid (March 2011, March 2012)
  • Healthcare Reform and the 340B Drug Discount Program: Expanded Eligibility and Expanded Compliance Risks, American Health Lawyers Association Webinar (November 2010)
  • It’s Not Child’s Play: Special Considerations for Pediatric Medicine and Research, Current Issues Relating to Off-Label use of Drugs and Devices in Children, American Health Lawyers Association Conference on Legal Issues Affecting Academic Medical Centers and Other Teaching Institutions (January 2010)
  • Medicare, Medicaid, and SCHIP Extension Act: What All Lawyers and Their Clients Must Know About the Act Before Settling a Personal Injury Claim, West National Online Conference (November 2009)
  • New Rules Governing PRRB Appeals, Healthcare Financial Management Association–National (December 2008)
  • New Rules Governing PRRB Appeals, Healthcare Financial Management Association–Puerto Rico Chapter, Healthcare Integration Medicare Update Seminar (August 2008)
  • New PRRB Appeal Rules: Effect on Providers, Healthcare Financial Management Association Audio Webcast (July 2008).