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EXETER MEMORIAL HOSP. ASS'N v. BELSHE

Nos. 97-15016, 97-15274.

145 F.3d 1106 (1998)

EXETER MEMORIAL HOSPITAL ASSOCIATION, dba Memorial Hospital at Exeter, Plaintiff-Appellee, v. Kimberly BELSHE, Director, California Department of Health Services, Defendant-Appellant. CALIFORNIA HEALTHCARE ASSOCIATION, and Association of California Healthcare Districts, Plaintiffs-Appellants, v. CALIFORNIA DEPARTMENT OF HEALTH SERVICES, Kimberly Belshe, Director, Defendants-Appellees.

United States Court of Appeals, Ninth Circuit.

Decided June 3, 1998.

As Amended June 12, 1998.

As Amended on Denial of Rehearing September 8, 1998.

Attorney(s) appearing for the Case

Angela Botelho, Deputy Attorney General, San Francisco, California, for defendant-appellant/defendants-appellees.

Raoul Thorbourne, Deputy Attorney General, Sacramento, California, for defendant and appellant California Department of Health Services.

Byron J. Gross, Hooper, Lundy & Bookman, Inc., Los Angeles, California, for plaintiff-appellee Exeter Memorial Hospital Assoc.

Craig J. Cannizzo, Hanson, Bridgett, Marcus, Vlahos & Rudy, San Francisco, California, for plaintiffs-appellants California Healthcare Assoc.

Before: SCHROEDER, BEEZER and BRUNETTI, Circuit Judges.

SCHROEDER, Circuit Judge:

These two appeals raise a question of statutory construction on which reasonable minds can differ. Indeed, two distinguished district judges of this Circuit reached opposite results when faced with it. The issue is whether federal approval was required before a state agency could implement changes to its Medicaid plan in 1995.

Plaintiff Exeter Memorial Hospital Association operates a rural hospital and plaintiff California Healthcare...

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