Univ. of Med. and Dentistry of N.J. v. Grant,
No. A-3014-99T3 (N.J. Super. Ct. App. Div. June 7, 2001)

After the Department of Health and Senior Services ("DHSS") decreased the university hospital's charity care subsidy by approximately $9,000,000, the hospital filed an appeal, arguing that the DHSS used the incorrect charity care charges data and cost reports and failed to acknowledge the hospital's "nominal charge provider" status (it charges charity care patients less than its costs for outpatient services) when valuing the hospital's documented charity care. While finding no other errors in DHSS's calculations, the superior court did find that DHSS "arbitrarily" failed to consider the hospital's nominal charge provider status, and therefore directed the DHSS to recalculate and reallocate the hospital's charity care subsidy taking it into account.