UNITED HOSP. MED. CTR. v. STATE


793 A.2d 1 (2002)

349 N.J. Super. 1

UNITED HOSPITALS MEDICAL CENTER, Hospital Center at Orange, St. Francis Medical Center, St. Peter's Medical Center, St. Mary's Hospital (Passaic), Elizabeth General Medical Center, Chilton Memorial Hospital, Deborah Heart & Lung Center, Newcomb Medical Center, Cathedral Healthcare System, Inc., St. Francis Hospital (Jersey City), Mountainside Hospital, Palisades General Hospital, Graduate Health System Rancocas Hospital, St. Mary's Hospital (Hoboken), Morristown Memorial Hospital, Overlook Hospital, and Hackettstown Community Hospital, Appellants, v. The STATE of New Jersey and William Waldman, Commissioner, Department of Human Services, Respondents.

Superior Court of New Jersey, Appellate Division.

Decided February 22, 2002.


Attorney(s) appearing for the Case

Reed, Smith, Shaw & McClay, attorneys for appellants United Hospitals Medical Center, St. Francis Medical Center, St. Mary's Hospital (Passaic), Elizabeth General Medical Center, Chilton Memorial Hospital, St. Francis Hospital (Jersey City), Mountainside Hospital, Palisades General Hospital, St. Mary's Hospital (Hoboken), Morristown Memorial Hospital and Overlook Hospital (Murray J. Klein, Princeton, and Calvin A. Jones, of counsel; Steven M. Ziolkowski, on the brief).

Kalison, McBride, Jackson & Murphy, Liberty Corner, attorneys for appellants Hospital Center at Orange, St. Peter's Medical Center, Graduate Health, System-Rancocas Hospital and Hackettstown Community Hospital, joins in the brief of the appellants represented by Reed, Smith, Shaw & McClay.

John J. Farmer, Jr., Attorney General, and Salvatore G. Rotella and Phyllis D. Thompson (Covington & Burling), of the D.C. bar, admitted pro hac vice, attorneys for respondents (Michael J. Haas, Assistant Attorney General, of counsel; Eileen C. Stokley, Deputy Attorney General, Mr. Rotella and Ms. Thompson, on the brief).

Before Judges SKILLMAN, WALLACE, Jr. and CARCHMAN.


The opinion of the court was delivered by SKILLMAN, P.J.A.D.

The issue presented by this appeal is whether regulations governing the Medicaid reimbursement rates for inpatient hospital care, adopted by the Division of Medical Assistance and Health Services in 1995 and 1997, conformed with a federal law, commonly referred to as the Boren Amendment, which required a state's Medicaid rates to be "reasonable and adequate to meet...

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