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GREATER NEW YORK HOSPITAL ASS'N v. BLUM

No. 79 C 1833.

476 F.Supp. 234 (1979)

GREATER NEW YORK HOSPITAL ASSOCIATION, Long Island College Hospital and Maimonides Medical Center, on behalf of themselves and all other nonprofit hospitals in the Greater New York Hospital Association subject to the New York State Medicaid "demonstration project", Plaintiffs, v. Barbara B. BLUM, Commissioner of Social Services of the State of New York, David Axelrod, Commissioner of Health of the State of New York, and Joseph A. Califano, Jr., Secretary of the United States Department of Health, Education and Welfare, Defendants.

United States District Court, E. D. New York.

September 5, 1979.

Attorney(s) appearing for the Case

Franklin S. Bonem, Proskauer, Rose, Goetz & Mendelsohn, New York City, for plaintiffs.

Robert L. Begleiter, Asst. U. S. Atty., Brooklyn, N. Y., for defendant Harris.

Arlene R. Silverman and Rosalind Fink, Asst. Attys. Gen. of the State of New York, New York City, for defendant Blum.

MEMORANDUM AND ORDER

GEORGE C. PRATT, District Judge:

Plaintiffs challenge the legality of a "demonstration project" instituted by defendants in 46 non-profit New York City hospitals. In 20 of these hospitals since March, 1979, a "demonstration team" of state nurses and doctors has reviewed all hospital claims for Medicaid reimbursement, taking over this function from the Professional Standard Review Organizations (PSROs), and, according to plaintiffs, disallowing...

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