The case of Your Home Visiting Nurse Services, Inc. v. Donna E. Shalala, Secretary of Health and Human Services in 1998 revolved around the issue of Medicare reimbursement for home health care services provided by Your Home Visiting Nurse Services (Your Home). The Supreme Court had to decide whether the Department of Health and Human Services' interpretation of a Medicare regulation was reasonable or not. This regulation pertained to how costs incurred by home health agencies should be allocated between Medicare patients and non-Medicare patients for purposes of determining reimbursements from the federal government. Your Home argued that it should receive higher reimbursements because its non-Medicare patients were more costly than average due to their severe illnesses while its Medicare patients were less expensive than average. However, the court sided with Shalala's argument that such cost allocation must be based on actual services provided rather than patient characteristics like illness severity which are beyond an agency's control. Therefore, it upheld her decision denying additional reimbursements sought by Your Home under this rationale.

The dissenting opinion in the case of Your Home Visiting Nurse Services, Inc. v. Donna E. Shalala argued that the Secretary of Health and Human Services had overstepped her authority by implementing a regulation which retroactively changed Medicare reimbursement rates for home health care providers without providing adequate notice or opportunity to comment on this change as required by law. The dissenters believed that this action violated both procedural due process rights and statutory requirements under the Administrative Procedure Act (APA). They contended that such unilateral actions undermine trust in government institutions and could potentially destabilize an already fragile healthcare system if allowed to stand unchecked.