Belshe

Introduction

This appeal requires interpretation of a federal statute governing payment to hospitals which serve a disproportionate share of Medicaid patients. In particular, the issue is interpreting the phrase “the mean.” California, with approval from the federal government, has interpreted the phrase to permit use of a weighted mean. Appellant, on the other hand, contends that said interpretation violates federal law because Congress intended use of an arithmetic mean. The trial court resolved the issue against appellant. We affirm.

Factual and Procedural Background

In California, Medicaid patients are served by the state’s Medi-Cal program. Appellant Garfield Medical Center (Garfield) is certified to participate in the Medi-Cal program as a provider of hospital services. Garfield is reimbursed by Medi-Cal for inpatient services through a selective provider contracting program.

The Federal Disproportionate Share Hospital Program

The disproportionate share hospital supplemental payment adjustment program is a federally mandated program designed to recognize those hospitals which served a disproportionate number of Medicaid patients.

In 1987, Congress required…