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BEEKMAN-DOWNTOWN HOSP. v. WHALEN

44 N.Y.2d 124 (1978)

In the Matter of Beekman-Downtown Hospital et al., Appellants, v. Robert P. Whalen, as Commissioner of the Department of Health of the State of New York, et al., Respondents. In the Matter of Astoria General Hospital et al., Appellants, v. Robert P. Whalen, as Commissioner of the Department of Health of the State of New York, et al., Respondents.

Court of Appeals of the State of New York.

Decided March 29, 1978.

Attorney(s) appearing for the Case

Jacob Imberman, Robert M. Kaufman, Alexander Gigante, Jr., and Bruce E. Fader for appellants in the first above-entitled proceeding.

I. Leon Goodman and Michael F. McGahan for appellants in the second above-entitled proceeding.

Donald B. da Parma and Harold B. Vasios for Blue Cross and Blue Shield of Greater New York, respondent in the first and second above-entitled proceedings.

Louis J. Lefkowitz, Attorney-General (Mark C. Rutzick and Samuel A. Hirshowitz of counsel), for Robert P. Whalen and another, respondents in the first and second above-entitled proceedings.

Chief Judge BREITEL and Judges JASEN and FUCHSBERG concur with Judge JONES; Judges GABRIELLI and COOKE dissent and vote to affirm on the opinion of Mr. Justice SAMUEL J. SILVERMAN at the Appellate Division (); Judge WACHTLER taking no part.

JONES, J.

We hold that, consistent with the principles of litigation settlement, both Blue Cross and the State officials affected, the Commissioner of Health and the Superintendent of Insurance, must be held to the terms of agreements which were executed in settlement of prior litigation between the parties.

With the enactment of the Cost Control Act of 1969 (L 1969, ch 957), a system of prospective calculation...

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