Opinion
No. 00-10099.
December 22, 2000.
Appeal from the United States District Court for the Northern District of Texas, 3:96-CV-571-R.
The appellant, Clinical Laboratories, challenges as arbitrary and capricious a formula approved by the Secretary to compute reimbursement for certain health care providers for travel expenses. Appellants challenge two elements of the agency's travel allowance formula: (l) the 35 mile per hour average used as the standard speed for delivery of services, and (2) the median cost per specimen.
Based upon our review of the record and considering the briefs and argument of counsel, we are satisfied that the Secretary's conclusions with respect to this second element-the median cost per specimen-is fully supported by the record and therefore is not arbitrary or capricious. However, with respect to the first element, the 35 mile per hour average speed, we are not satisfied that the record supports this figure. From the briefs, it appears that the Secretary relied on documents which were not made a part of the record to support this figure. Because the record does not provide a basis for the Secretary's use of the 35 mile per hour figure, we remand this case to the Secretary to give it an opportunity to include in the administrative record those documents it relied upon to support that decision and to provide a complete explanation for this decision. We find appellant's remaining arguments unpersuasive.
Accordingly, we remand this case to the Secretary for further proceedings consistent with this order.