Jewish Home & Infirmary of Rochester, New York, Inc. v. Commissioner of New York State Department of Health

The State Commissioner of Health (the Commissioner) has made a reasonable and unrefuted determination that a straightforward application of the so-called "RUG-II” (Resource Utilization Group) Medicaid reimbursement rate methodology to the 1989-1991 rate years would result in the State’s nursing homes receiving reimbursement at rates which contain an inflationary factor not ascribable to the cost of patient care. Medicaid reimbursement rates containing such an inflationary factor unrelated to the cost of care would clearly transgress the fundamental statutory objective of health care…