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SOC'Y OF NY HOSP v. AXELROD

70 N.Y.2d 467 (1987)

In the Matter of Society of the New York Hospital, Respondent, v. David Axelrod, as Commissioner of Health of the State of New York, et al., Appellants. Society of the New York Hospital, Respondent, v. Howard Veit, as Director of Office of Health Systems Management, et al., Appellants. In the Matter of New York Eye & Ear Infirmary, Respondent, v. David Axelrod, as Commissioner of the New York State Department of Health, et al., Appellants.

Court of Appeals of the State of New York.

Decided November 19, 1987.

Attorney(s) appearing for the Case

Robert Abrams, Attorney-General (Marion R. Buchbinder, O. Peter Sherwood and Lawrence S. Kahn of counsel), for appellants.

William C. Heck and Rita M. Frederick for Society of the New York Hospital, respondent.

Norton L. Travis and Howard D. Avrutine for New York Eye and Ear Infirmary, respondent.

Judges SIMONS, KAYE, TITONE, HANCOCK, JR., and BELLACOSA concur; Chief Judge WACHTLER taking no part.

ALEXANDER, J.

We conclude upon this appeal that respondent, Commissioner of Health, improperly considered the ability of petitioners to "afford" labor cost increases above projected levels in determining whether to grant their applications, pursuant to the Supplemental Hospital Index Factor (SHIF) program, for a waiver of the labor cost reimbursement ceiling. Accordingly, his refusal, on the basis of "affordability...

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