The opinion of the court was delivered by PASHMAN, J.
The primary issue presented in this case is whether a State may, consistent with the Federal Medicaid Act, 42 U.S.C. § 1396 et seq., and its accompanying regulations, 42 C.F.R. § 430 et seq. (1978), deny reimbursement to a hospital for medically necessary services rendered to an eligible patient who can be adequately treated in a less intensive care facility but who, through...
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