Kenmar Surgical Aids, Inc. v. New York State Department of Health

OPINION OF THE COURT

James B. Canfield, J.

In this proceeding/declaratory judgment action, petitioner-plaintiff Kenmar Surgical Aids, Inc. (Kenmar), which since commencing this proceeding has been indicted for Medicaid fraud, seeks to carve out an exception to Matter of Medicon Diagnostic Labs. v Perales (74 NY2d 539) via a declaration that 18 NYCRR 518.7 (d) (3) is facially unconstitutional to the extent that it authorizes respondent-defendant New York State Department of Health (DOH) to act on requests by the other State respondents-defendants to withhold Medicaid reimbursement from providers.