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STATE, DEPT. OF HEALTH v. NORTH STAR HOSP.

No. S-14074.

280 P.3d 575 (2012)

STATE of Alaska, DEPARTMENT OF HEALTH & SOCIAL SERVICES, Appellant, v. NORTH STAR HOSPITAL, Appellee.

Supreme Court of Alaska.

July 20, 2012.

Attorney(s) appearing for the Case

Thomas A. Dosik , Assistant Attorney General, Anchorage, and John J. Burns , Attorney General, Juneau, for Appellant.

Stephen D. Rose , Garvey Schubert Barer , Seattle, Washington, for Appellee.

Before: CARPENETI, Chief Justice, FABE, WINFREE, and STOWERS, Justices.

OPINION

FABE, Justice.

I. INTRODUCTION

The Office of Rate Review, a division of the State Department of Health and Social Services (DHSS), set a Medicaid payment rate for North Star Hospital based on a 2005 home office cost report that did not reflect a substantial increase in costs incurred by North Star in 2006. While making its determination, the Office of Rate Review had access to an unaudited version of a 2006 home office cost report...

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