Winter

Defendant Robert Gnaizda in his capacity as Director of the California State Department of Health (hereafter appellant or DOH) appeals from a judgment rendered in an action for declaratory relief. The stipulated facts, along with the pertinent portions of the record, reveal the following background:

On or about April 8, 1972, John Roushkolb, a minor was injured in an automobile accident. Roushkolb was eligible for medical care under the California Medical Assistance Program (Medi-Cal). He sought and received medical treatment from Dr. Frank E. Winter, a licensed California physician (hereafter respondent). Respondent presented a bill for $760 for the Medi-Cal services rendered. In accordance with the uniform fee schedule (Cal. Admin. Code, tit. 22, § 51501 et seq.) respondent was compensated by Medi-Cal in the amount of $503.

Codefendant Henry O. Lienhard, a licensed attorney, who represented Roushkolb in the personal injury matter, recovered insurance proceeds for his client under an uninsured motorist claim. After the recovery was effected, respondent submitted a bill to Lienhard and Roushkolb for $257, the difference between the amount charged in the original bill…