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MONMOUTH MEDICAL CENTER v. STATE

80 N.J. 299 (1979)

403 A.2d 487

MONMOUTH MEDICAL CENTER, A NON-PROFIT CORPORATION OF THE STATE OF NEW JERSEY, RESPONDENT-CROSS-APPELLANT, v. STATE OF NEW JERSEY; ANN KLEIN, COMMISSIONER OF INSTITUTIONS AND AGENCIES OF THE STATE OF NEW JERSEY; GERALD J. REILLY, DIRECTOR OF THE DIVISION OF MEDICAL ASSISTANCE AND HEALTH SERVICES OF THE STATE OF NEW JERSEY, APPELLANTS-CROSS-RESPONDENTS.

The Supreme Court of New Jersey.

Decided June 18, 1979.

Attorney(s) appearing for the Case

Ms. Andrea M. Silkowitz, Deputy Attorney General, argued the cause for appellants (Mr. John J. Degnan, Attorney General of New Jersey, attorney; Mr. Stephen Skillman, Assistant Attorney General, of counsel).

Mr. Frank R. Ciesla argued the cause for respondent (Messrs. Giordano, Halleran and Crahay, attorneys; Mr. Ciesla and Mr. Phil H. Leone, on the briefs).

The opinion of the court was delivered by PASHMAN, J.

The primary issue presented in this case is whether a State may, consistent with the Federal Medicaid Act, 42 U.S.C. § 1396 et seq., and its accompanying regulations, 42 C.F.R. § 430 et seq. (1978), deny reimbursement to a hospital for medically necessary services rendered to an eligible patient who can be adequately treated in a less intensive care facility but who, through...

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