TEMPLE UNIVERSITY v. WHITE

Nos. 90-1112, 90-1203 to 90-1206, 90-1244, 90-1661.

941 F.2d 201 (1991)

TEMPLE UNIVERSITY, Plaintiff-Appellee, v. John F. WHITE, Jr., Eileen M. Schoen, David S. Feinberg, David D. Ulsh, G. June Hoch, Defendants-Appellants. ALBERT EINSTEIN MEDICAL CENTER, Allegheny General Hospital, Children's Hospital of Pittsburgh, Episcopal Hospital, Giuffre Medical Center, Magee-Womens Hospital, Mercy Catholic Medical Center-Misericordia Division, Mercy Hospital of Pittsburgh, Montefiore Hospital Association of Western Pennsylvania, Inc., Presbyterian University Hospital of Pittsburgh, St. Christopher's Hospital for Children, St. Joseph's Hospital, St. Mary Hospital, Western Pennsylvania Hospital, Germantown Hospital and Medical Center v. WHITE, John F., Jr., as Secretary of Public Welfare, Hershock, Michael H., as Secretary of the Budget John F. White, Jr. and Michael H. Hershock, Appellants. FRANKFORD HOSPITAL v. WHITE, Jr., John F., Secretary of Public Welfare, Schoen, Eileen M., Deputy Secretary for Medical Assistance Programs, Feinberg, David S., Director of the Bureau of Policy and Program Development of the Office of Medical Assistance Programs, Ulsh, David D., Acting Director of the Division of Inpatient Programs of the Office of Medical Assistance Programs, and Hershock, Michael H., Secretary of the Budget John F. White, Jr., Eileen M. Schoen, David S. Feinberg, David D. Ulsh and Michael H. Hershock, Appellants. HAHNEMANN UNIVERSITY HOSPITAL and Presbyterian Medical Center of Philadelphia, and the Trustees of University of Pennsylvania v. WHITE, John F., Jr., Secretary of Public Welfare, Schoen, Eileen M., Deputy Secretary for Medical Assistance, Feinberg, David S., Director of the Bureau of Policy and Program Development of the Office of Medical Assistance, and Ulsh, David D., Acting Director of the Division of Inpatient Programs of the Office of Medical Assistance and Hershock, Michael H., Secretary of the Budget John F. White, Jr., Eileen M. Schoen, David S. Feinberg, David D. Ulsh, and Michael H. Hershock, Appellants. HOSPITAL ASSOCIATION OF PENNSYLVANIA, Allegheny Valley Hospital, the Allentown Hospital, Allentown Osteopathic Medical Center, J.C. Blair Memorial Hospital, Braddock General Hospital, Bradford Hospital, Brandywine Hospital, Butler Memorial Hospital, Carbondale General Hospital, Central Medical Center and Hospital; Chambersburg Hospital, Chester County Hospital, Chestnut Hill Hospital, the Children's Hospital of Philadelphia, Charles Cole Memorial Hospital, Clarion Osteopathic Community Hospital, Clearfield Hospital, Community General Osteopathic Hospital, Community Medical Center, Conemaugh Valley Memorial Hospital, Divine Providence Hospital, Divine Providence Hospital of Pittsburgh, Doylestown Hospital, Dubois Regional Medical Center, Ephrata Community Hospital, Eye & Ear Hospital of Pittsburgh, Forbes Metropolitan Health Center, Forbes Regional Health Center, Franklin Regional Medical Center, Frick Community Health Center, Geisinger Medical Center, Geisinger Wyoming Valley Medical Center, the Germantown Hospital and Medical Center; Gettysburg Hospital, Gnaden Huetten Memorial Hospital, Good Samaritan Hospital, Greene County Memorial Hospital, Hamot Medical Center, Hanover General Hospital, Harrisburg Hospital, Highlands Hospital and Health Center, Indiana Hospital, Hameson Memorial Hospital, Jeannette District Memorial Hospital, Jefferson Hospital, Andrew Kaul Memorial Hospital, Kensington Hospital, Lancaster General Hospital, Lankenau Hospital, Lee Hospital, Lehigh Valley Hospital Center, McKeesport Hospital, Meadville Medical Center, the Medical Center, Beaver, Pa., Inc., Medical College of Pennsylvania, Memorial Hospital, Memorial Hospital of Bedford, Mercy Catholic Medical Center, Fitzgerald Mercy Division, Mercy Hospital, Altoona, Methodist Hospital, Millcreek Community Hospital, Monongahela Valley Hospital, Muhlenburg Hospital Center, Northeastern Hospital of Philadelphia, North Penn Hospital, Osteopathic Medical Center of Philadelphia, Pennsylvania Hospital, Phoenixville Hospital, Pottstown Memorial Medical Center, Pottsville Hospital and Warne Clinic, Punxsutawney Area Hospital, the Penn State Hospital/the Milton S. Hershey Medical Center, Quakertown Community Hospital, Reading Hospital and Medical Center, Roxborough Memorial Hospital, St. Agnes Medical Center, St. Francis Medical Center, St. Joseph's Hospital, Carbondale, St. Joseph Hospital, Lancaster, Sacred Heart Hospital, Sewickley Valley Hospital, Shadyside Hospital, Sharon General Hospital, Southern Chester County Medical Center, Suburban General Hospital, Sunbury Community Hospital, Taylor Hospital, Tyler Memorial Hospital, Tyrone Hospital, Westmoreland Hospital Association, Wilkes-Barre General Hospital, the Williamsport Hospital & Medical Center, and York Hospital and Greenville Regional Hospital, Altoona Hospital, Bloomsburg Hospital, Brownsville Hospital, Bryn Mawr Hospital, Canonsburg Hospital, Carlisle Hospital, Citizens General, Community General Hospital, Reading, Community Hospital of Lancaster, Crozer-Chester Hospital, Delaware County Memorial Hospital, Easton Hospital, Ellwood Hospital, Grand View Hospital, Jeanes Hospital, Jersey Shore Hospital, J.F. Kennedy Hospital, Lower Bucks Hospital, Metro Health Hospital, Metropolitan Hospital, Central, Metropolitan Hospital, Parkview, Metropolitan Hospital, Springfield, Montgomery Hospital, Paoli Hospital, Pocono Hospital, Sacred Heart Hospital, Chester, Saint John's Hospital, Hazelton-Saint Joseph's Medical Center, Saint Joseph Hospital, Reading, Saint Luke's Hospital, Saint Margaret Memorial Hospital, Saint Vincent's Hospital, Suburban Hospital, Titusville Hospital, Uniontown Hospital, Washington Hospital and the Wayne County Memorial Hospital. v. WHITE, John F., Jr., as Secretary of Public Welfare, Department of Public Welfare, Commonwealth of Pennsylvania, Hershock, Michael H., in his official capacity only as Secretary of the Budget, Department of the Budget, Commonwealth of Pennsylvania, Franklin, Carolyn, in her official capacity only as Western Regional Representative of Public Welfare, Department of Public Welfare, Commonwealth of Pennsylvania, Hughes, Patricia, in her official capacity only as Southeastern Regional Representative of Public Welfare, Department of Public Welfare, Commonwealth of Pennsylvania John F. White, Jr., Carolyn Franklin, Patricia Hughes and Michael H. Hershock, Appellants. (Two Cases) TEMPLE UNIVERSITY, Plaintiff-Appellee, v. John F. WHITE, Jr., Eileen M. Schoen, David S. Feinberg, David D. Ulsh, G. June Hoch, Defendants-Appellants.

United States Court of Appeals, Third Circuit.

Decided July 30, 1991.

As Amended September 23, 1991.


Attorney(s) appearing for the Case

Ernest D. Preate, Jr., Atty. Gen., Kate L. Mershimer, Senior Deputy Atty. Gen. (argued), Gwendolyn T. Mosley, Calvin R. Koons, Senior Deputy Attys. Gen., John G. Knorr, III, Chief Deputy Atty. Gen., Chief, Litigation Section, Office of Atty. Gen. of Pa., Harrisburg, Pa., William D. Lenahan, Asst. Counsel, Dept. of Public Welfare, Harrisburg, Pa., for appellants John F. White, Jr., Eileen M. Schoen, David S. Feinberg and David D. Ulsh.

Matthew M. Strickler (argued), Jenny P. Shulbank, Ballard, Spahr, Andrews & Ingersoll, George E. Moore, of counsel Temple University, Philadelphia, Pa. for appellee in 90-1112 and 90-1244.

Jeffrey B. Schwartz, David M. Doret, Mark H. Gallant (argued), Alan G. Rosenbloom, Wolf, Block, Schorr & Solis-Cohen, Philadelphia, Pa., for amicus in 90-1112 and 90-1244 and for appellees in 90-1203.

Jennifer A. Stiller (argued), Elizabeth A. Read, Patrick K. McCoyd, Montgomery, McCracken, Walker & Rhoads, Philadelphia, Pa. for appellees in 90-1204 and 90-1205.

Roland Morris (argued), Jack M. Mumford, Paula G. Sanders, Duane, Morris & Heckscher, Harrisburg, Pa., for appellees in 90-1206.

Henry W. Sawyer, III (argued), James Eiseman, Jr., Drinker Biddle & Reath, Philadelphia, Pa., for appellee Sacred Heart Medical Center in 90-1661.

Before COWEN, ALITO and GARTH, Circuit Judges.


OPINION OF THE COURT

GARTH, Circuit Judge:

This set of six consolidated appeals arises from the challenges, raised by over 140 Pennsylvania hospitals, to the validity of Pennsylvania's payment rates that the Commonwealth has set pursuant to its obligations under the Medicaid Program, Title XIX of the Social Security Act. 42 U.S.C.A. § 1396 et seq. (1983 & West Supp.1991). The Medicaid Program, as it is described in Pinnacle Nursing Home...

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