Wisconsin Hospital Ass'n v. Reivitz

CUDAHY, Circuit Judge.

Plaintiffs, including the Wisconsin Hospital Association (“WHA”) and several individual Wisconsin acute general care hospitals, challenged the constitutionality of a Wisconsin statute which continued Medicaid reimbursement rates at their 1982 level for the first three months of the medical assistance providers’ 1983 fiscal year. The district court, granting summary judgment for the plaintiffs, held that this Wisconsin statute was unconstitutional under the Supremacy Clause because it conflicted with a federal statute and because a rate freeze is inherently unreasonable.…