Samaritan Health System v. Arizona Health Care Cost Containment System Administration

OPINION

TOCI, Presiding Judge.

¶ 1 Plaintiff hospitals and medical centers (“plaintiffs”) sought a declaratory judgment that the Arizona Health Care Cost Containment System (“AHCCCS”) rule governing outlier threshold adjustments to their tiered per diem reimbursements, Arizona Administrative Code Rule R9-22-712(A)(6) (“Rule 712”), was invalid. AHCCCS moved to dismiss the claim on the basis that plaintiffs had failed to exhaust administrative remedies. The trial court found that the outlier adjustments were not legislatively authorized and held that plaintiffs could seek a declaratory judgment…