MATTER OF FINAL AGENCY DECISION


273 N.J. Super. 205 (1994)

641 A.2d 1043

IN THE MATTER OF FINAL AGENCY DECISION BY NEW JERSEY DEPARTMENT OF HEALTH REGARDING UTILIZATION AND QUALITY REVIEW FOR CALENDAR YEAR 1993. AXIOM REVIEW, A CORPORATION OF THE STATE OF NEW JERSEY, PLAINTIFF-RESPONDENT, v. BARNERT MEMORIAL HOSPITAL, BETH ISRAEL MEDICAL CENTER OF PASSAIC, CHRIST HOSPITAL, CLARA MAASS MEDICAL CENTER, ELIZABETH GENERAL MEDICAL CENTER, GENERAL HOSPITAL CENTER AT PASSAIC, GREENVILLE HOSPITAL, HOSPITAL CENTER AT ORANGE, MEADOWLANDS HOSPITAL MEDICAL CENTER, MUHLENBERG REGIONAL MEDICAL CENTER, OVERLOOK HOSPITAL, ST. ELIZABETH HOSPITAL, ST. FRANCIS HOSPITAL, ST. JAMES HOSPITAL, ST. MICHAEL'S MEDICAL CENTER, UNION HOSPITAL, UNITED HOSPITALS MEDICAL CENTER, EAST ORANGE GENERAL HOSPITAL, WEST HUDSON HOSPITAL, ST. MARY'S HOSPITAL, ST. MARY'S AMBULATORY CARE HOSPITAL, AND NEW JERSEY HOSPITAL ASSOCIATION, APPELLANTS. NORTH JERSEY PHYSICIANS REVIEW, INC., PLAINTIFF-RESPONDENT, v. MORRISTOWN MEMORIAL HOSPITAL, DEFENDANT-APPELLANT.

Superior Court of New Jersey, Appellate Division.

Decided April 7, 1994.


Attorney(s) appearing for the Case

Frank R. Ciesla argued the cause for appellants New Jersey Hospital Association and all referenced hospitals, and for intervenors New Jersey Hospital Association and Bergen Pines County Hospital (Giordano, Halleran & Ciesla, attorneys; Mr. Ciesla, of counsel; Elizabeth Dusaniwskyj and Todd R. Staretz, on the brief).

James J. Madden argued the cause for intervenor Peer Review Organization of New Jersey, Inc. (Madden, Madden & Del Duca, attorneys; Mr. Madden, of counsel; Damien O. Del Duca, on the brief).

David H. Ben-Asher argued the cause for plaintiff-respondent-intervenor Axiom Review (Rabner, Allcorn & Meislik, attorneys; Mr. Ben-Asher, on the brief).

Mary F. Rubinstein, Deputy Attorney General, argued the cause for respondent New Jersey Department of Health (Deborah T. Poritz, Attorney General of New Jersey, attorney; Joseph L. Yannotti, Assistant Attorney General, of counsel; Ms. Rubinstein, on the brief).

Susan Danielson Bonfield argued the cause for appellants Hospital Center at Orange and St. Elizabeth Hospital (Cohen, Shapiro, Polisher, Shiekman and Cohen, attorneys; Murray J. Klein, of counsel; Mr. Klein, Ms. Bonfield and Holly T. Riblet, on the brief).

Douglas S. Brierley argued the cause for defendant-appellant Morristown Memorial Hospital (Schenck, Price, Smith & King, attorneys; Mr. Brierley, Stephen Sepaniak and M. Sheilah O'Halloran, on the brief).

David C. Wallace argued the cause for plaintiff-respondent North Jersey Physicians Review, Inc.

Before Judges COLEMAN, THOMAS and LEVY.


The opinion of the court was Delivered by COLEMAN, P.J.A.D.

Under the Health Care Facilities Planning Act, as amended by L. 1978, c. 83, N.J.S.A. 26:2H-1 et seq., administrative regulations were promulgated to institute and implement a Diagnosis Related Group (DRG) method of payment or reimbursement to hospitals for inpatient care. A second system was established, under the authority of Chapter 83, known as State-qualified utilization review...

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