Perseus of N.E., MA, Inc. v. Commonwealth

On December 31, 1996, Middlesex County (county) sold Middlesex County Hospital (hospital) to Perseus of N.E., MA, Inc. (Perseus), for $3.9 million. After the sale, the Division of Medical Assistance (division) demanded payment from Perseus for Medicaid overpayments made to the hospital for services rendered during the county’s ownership. The issue is whether the county must indemnify Perseus for that liability. *164A Superior Court judge granted summary judgment in favor of the Commonwealth, as successor to the county. We allowed Perseus’s application for direct appellate review. We reverse.

Prior…