SAMARITAN HEALTH SYSTEM v. AHCCCS

No. 1 CA-CV 99-0522.

11 P.3d 1072 (2000)

198 Ariz. 533

SAMARITAN HEALTH SYSTEM, an Arizona corporation; Arrowhead Hospital, an Arizona corporation; Medical Environments, Inc., a California corporation, d/b/a Bullhead Community Hospital; Carondelet Health Services, Inc., an Arizona corporation, d/b/a Carondelet St. Joseph's Hospital and Carondelet St. Mary's Hospital; Casa Grande Regional Medical Center, an Arizona corporation; Chandler Regional Hospital, an Arizona corporation; Mesa General Hospital, an Arizona corporation; Sun Health Corporation, an Memorial Hospital, an Arizona corporation, d/b/a Del E. Webb and Walter O. Boswell Memorial Hospital; Flagstaff Medical Center, Inc., an Arizona corporation; Healthwest Regional Medical Center, an Arizona corporation; Holy Cross Hospital and Health Center, Inc., an Arizona corporation; John C. Lincoln Hospital and Health Corporation, an Arizona corporation; Kingman Hospital, Inc., an Arizona corporation, d/b/a Kingman Regional Medical Center; Maricopa County Medical Center, an Arizona corporation; Mesa General Hospital Medical Center, Inc., an Arizona corporation; Lutheran Health Network, an Arizona corporation, d/b/a Mesa Lutheran Hospital and Valley Lutheran Hospital; Paradise Valley Hospital, an Arizona corporation; Phoenix Baptist Hospital, an Arizona corporation; Phoenix Childrens Hospital, an Arizona corporation; Phoenix Memorial Hospital, an Arizona corporation; Scottsdale Memorial Hospital, an Arizona corporation; Mercy Healthcare Arizona, an Arizona corporation, d/b/a St. Joseph's Hospital and Medical Center; Sierra Vista Community Hospital, an Arizona corporation; Tucson Medical Center, an Arizona corporation; University Medical Center Corporation; an Arizona corporation; Yavapai Regional Medical Center, an Arizona corporation; Yuma Regional Medical Center, an Arizona corporation; and Marcus J. Lawrence Medical Center, an Arizona corporation, Plaintiffs-Appellees, Cross-Appellants, v. ARIZONA HEALTH CARE COST CONTAINMENT SYSTEM ADMINISTRATION, an agency of the State of Arizona; John H. Kelly, in his official capacity as Director, Defendants-Appellants, Cross-Appellees.

Court of Appeals of Arizona, Division 1, Department B.

October 24, 2000.


Attorney(s) appearing for the Case

Gammage & Burnham P.L.C. by Richard B. Burnham, Cameron C. Artigue, Christopher A. Schmaltz, Phoenix, for Appellees.

Johnston & Kelly, P.L.C. by Logan T. Johnston, Anne C. Longo, Charles J. Adornetto, Phoenix, for Appellants.


OPINION

TOCI, Presiding Judge.

¶ 1 Plaintiff hospitals and medical centers ("plaintiffs") sought a declaratory judgment that the Arizona Health Care Cost Containment System ("AHCCCS") rule governing outlier threshold adjustments to their tiered per diem reimbursements, Arizona Administrative Code Rule R9-22-712(A)(6) ("Rule 712"), was invalid. AHCCCS moved to dismiss the claim on the basis that plaintiffs had failed to exhaust administrative remedies...

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