Granville House, Inc. v. Department of Health and Human Services, Arthur E. Noot as Commissioner of Public Welfare for the State of Minnesota

HEANEY, Circuit Judge.

This case involves a challenge to the interpretation of the phrase “institutions for mental disease” contained in the Medicaid

Act. The district court held that the interpretation adopted by the Department of Health and Human Services (HHS), to include the diseases of chemical dependency and alcoholism within the term “mental diseases,” was unreasonable. We reverse in part and remand to the district court with directions to it to allow the Grant Appeals Board the opportunity to consider and decide this matter, after which any party may seek review in the district court.

I.…