Emerson Hospital v. Rate Setting Commission

Emerson Hospital (Emerson) seeks review of a decision of the Rate Setting Commission (commission) pursuant to G. L. c. 176A, § 5 (1988 ed.). The commission denied Emerson the necessary authorization under the hospital’s reimbursement agreement with Blue Cross of Massachusetts, Inc. (Blue Cross), to recover an increase in the cost of utilities caused by an expansion of the hospital’s facilities. Emerson contends that the commission’s decision violated its own administrative regulation, and therefore was based on an error of law, unsupported by substantial evi-. *786dence, arbitrary and capricious,…