In re the 1976 Hospital Reimbursement Rate for William B. Kessler Memorial Hospital

The opinion of the court was delivered by

Sullivan, J.

This case involves a dispute between William B. Kessler Memorial Hospital .(Kessler) and the State Department of Health (Department) over the calculation of the per diem rate for 1976 at which Blue Cross and Medicaid were to reimburse Kessler for covered patient hospital care. The administrative decision was made pursuant to the Health Care Facilities Planning Act, N. J. 8. A. 26:2H-1 et seq. in a proceeding in which Kessler challenged the per diem rate set for Blue Cross and Medicaid patients.

*567The Act was passed in 1971 in response to…