EDGEWATER NURSING CENTER, INC. v. MILLER

No. 81-2512.

678 F.2d 716 (1982)

EDGEWATER NURSING CENTER, INC., an Illinois corporation, Sam Gorenstein, David Gorenstein and Sidney Gorenstein, d/b/a Edgewater Real Estate Partnership, Plaintiffs-Appellants, v. Jeffrey C. MILLER, Director, Illinois Department of Public Aid, and George Holland, Regional Administrator of the Health Care Financing Administration, as Agent for the Secretary of Health and Human Services, Defendants-Appellees.

United States Court of Appeals, Seventh Circuit.

Decided May 18, 1982.


Attorney(s) appearing for the Case

Abigail K. Spreyer, Chicago, Ill., for plaintiffs-appellants.

James C. O'Connell, Welfare Litigation Div., Frederick H. Branding, Asst. U. S. Atty., Chief, Civ. Div., Chicago, Ill., for defendants-appellees.

Before BAUER and POSNER, Circuit Judges, and GRANT, Senior District Judge.


POSNER, Circuit Judge.

This case involves a challenge to one feature of Illinois' method of reimbursing the costs of nursing homes that serve Medicaid patients.

In 1972 Congress passed a statute requiring every state that wanted to participate in the Medicaid program to adopt, by July 1, 1976, a plan for payment of services "on a reasonable cost related basis, as determined in accordance with methods and standards which shall be developed by the State on the...

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