American Medical International, Inc. v. Myers

Opinion

DALSIMER, J. *

Plaintiffs were corporate providers of medical care to Medi-Cal beneficiaries during the fiscal years ending in 1969-1973. Plaintiffs’ cost reports with the State Department of Health Services for those fiscal years sought reimbursement for costs plaintiffs had incurred to maintain their corporate status and to facilitate the raising of investment capital (hereinafter stock maintenance costs). The department disallowed these costs. On June 8, 1979, Administrative Law Judge Helen Gallagher of the Office of Administrative Hearings ruled that plaintiffs were entitled to…