Sligo Creek Center, a Maryland nursing home, recently appealed the constitutionality of the Centers for Medicare & Medicaid (CMS) enforcing a $1.5 million fine without a jury trial. The fine related to the facility’s failure to establish and maintain an infection control program. The appeal, currently pending in the Fourth Circuit of the United States Court of Appeals, appears set to determine whether CMS is bound by the U.S. Supreme Court’s 2024 Jarkesy opinion.
In the Jarkesy case, the Supreme Court held that the U.S. Securities and Exchange Commission (SEC) was required to offer an investment firm a jury trial before imposing a $300,000 fine. The scope of Jarkesy, and whether it extends to other federal agencies like CMS, remain open questions. The Fourth Circuit may be required to provide answers, making Sligo Creek’s appeal worth keeping an eye on.
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