Department of Health Services v. Superior Court

The discovery issue in this proceeding arises out of a civil action for damages brought by Century City Hospital (CCH) against the state Department of Health Services and others. CCH operates a hospital which provides services under the Medi-Cal program to persons who qualify for public social services. (Welf. & Inst. Code, § 14000 et seq.) The state reimburses such providers for the reasonable cost of the services rendered. A dispute between CCH and the department concerning the computation of costs led to a formal administrative hearing before Hearing Officer Takashi Kanenaga, who handed down his proposed decision on March 9, 1979. That decision was adopted by the department on March 22, 1979.

CCH, being dissatisfied with the administrative decision, petitioned the superior court in Los Angeles for review under Code of Civil Procedure section 1094.5; and on September 14, 1979, that court entered its judgment ordering the department to vacate its March 22, 1979, decision. The findings of the superior court declared that the administrative decision was arbitrary and capricious and unsupported by the facts. (Los Angeles Superior Court No. C 277278, entitled Century City…