Hospital Loses Challenge To NJ Health Care Subsidy

Law360, New York (January 2, 2014, 6:57 PM EST) -- A New Jersey appeals court on Thursday refused to disturb the state Division of Medical Assistance and Health Services’ allocation of hospital subsidies, dismissing a hospital’s claim that the agency incorrectly undervalued its share and changed the eligibility rules without a rule-making process.

A three-judge panel on the Superior Court of New Jersey’s Appellate Division affirmed the DMAHS’ decision, rejecting Hoboken University Medical Center’s appeal of the agency’s 2011 allocation of $166 million from the state’s Hospital Relief Subsidy Fund. The fund, created by health care...
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