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`the Dean of the School of Pharmacy.
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`A more comprehensive review of the record would demonstrate that MUHA exercised
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`sufficient control over the Pharmacy Program to be identified as an "operator." The record
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`demonstrates that each residency program within the Pharmacy Program is managed by a residency
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`program director. The residency program directors establish rotational schedules, ensure residents
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`are meeting their requirements, and provide evaluations of the residents. The residency program
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`directors reported to Dr. Paul Bush, MUHA Administrator of Pharmacy Services and Director of
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`Graduate Pharmacy Education. Dr. Heather Easterling has since assumed these two positions. ECF
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`No. 12-1, 52, 58. Dr. Bush also had the final say in all human capital decisions, including the
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`offering of residency positions and all disciplinary actions; publishing the Pharmacy Residency
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`Program Manual; controlling the Pharmacy Program budget; and chairing the Pharmacy Program
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`residency committee. Id. at 61-62.
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`This and other information in the record demonstrates that the Board's decision regarding
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`who controls the Pharmacy Program, particularly when taken in context of§ 413.85(f)(l)(iii)'s
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`admonition that an operator "be responsible for the day-to-day program operation," is arbitrary and
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`capricious and not supported by substantial evidence.
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`III.CONCLUSION
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`For the reasons stated, the court finds thatthe Board's narrow construction of§ 413.85(f) is
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`arbitrary and capricious and not supported by substantial evidence. MUHA' s motion for summary
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`judgment is granted. HHS' s motion for summary judgment is denied. The Board's decision dated
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`February 19, 2019 is reversed and vacated. The cause is remanded to HHS with directions to
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`reimburse MUHA, on a reasonable cost basis, for its nursing and allied health education costs
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`23
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`2:19-cv-01755-MBS Date Filed 03/29/21 Entry Number 40 Page 24 of 24
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`associated with the Pharmacy Program for Fiscal Years 2007 and 2008, plus interest pursuant to 42
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`U.S.C. § 1395oo(f)(2), plus costs of the within action.
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`IT IS SO ORDERED.
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`Charleston, South Carolina
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`March 26, 2021
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`/s/ Margaret B. Seymour
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`Senior United States District Judge
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