Catholic Medical Center of Brooklyn & Queens, Inc. v. Department of Health

The petitioner herein brings this proceeding under CPLR article 78 to determine whether the rates of reimbursement for Medicaid which were established by the respondent were determined in an arbitrary fashion *15and without due regard to the laws governing the fixing of such rates.

In order to approach this subject properly, it is necessary to understand the statutes, regulations and laws which governed the fixing of such rates at the time in question, namely, the period from July 1, 1971 to September 30, 1971. Basically the statute covering the situation is subdivision 3 of section 2807 of the…