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ASSN OF COUNTIES v. AXELROD

78 N.Y.2d 158 (1991)

New York State Association of Counties, Individually and on Behalf of 42 of Its Member Counties that Own and Operate Residential Health Care Facilities in the State of New York, Appellant, v. David Axelrod, as Commissioner of the New York State Department of Health, et al., Respondents.

Court of Appeals of the State of New York.

Decided June 27, 1991.

Attorney(s) appearing for the Case

Peter G. Bergmann, Kathy Hirata Chin and William J. Natbony for appellant.

Robert Abrams, Attorney-General (Clifford A. Royael, O. Peter Sherwood and Peter H. Schiff of counsel), for respondents.

Cornelius D. Murray and David M. Cherubin for New York State Health Facilities Association, Inc., amicus curiae.

Susan C. Waltman for the Greater New York Hospital Association, amicus curiae.

Brian D. Ellsworth for the New York Association of Homes and Services for the Aging, Inc., amicus curiae.

Judges SIMONS, KAYE and ALEXANDER concur with Judge BELLACOSA; Judge HANCOCK, JR., dissents and votes to affirm in a separate opinion in which Judge TITONE concurs; Chief Judge WACHTLER taking no part.

BELLACOSA, J.

The defendants, collectively referred to as the Department of Health (DOH), adopted a new method in 1986 for Medicaid reimbursement to nursing homes. Shortly thereafter, to contain costs and reduce all reimbursements, DOH effected an across-the-board percentage reduction to the new reimbursement rate method as a purported "corrective measure". Plaintiff, New York State Association of Counties (NYSAC...

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