Belshe

Palomar Pomerado Health System v. Belshe

Good Law
180 F.3d 1104·99 Daily Journal DAR 6655·1999 WL 431150·1999 U.S. App. LEXIS 14796·99 Cal. Daily Op. Serv. 5147
United States Court of Appeals for the Ninth CircuitJune 29, 1999No. 98-15794California3,041 words

Opinion

Lead Opinion

Pregerson, J.

Opinion by Judge PREGERSON; Concurrence by Judge HAWKINS.

This action arises out of a California Department of Health Services (“DHS”) audit of Plaintiff Palomar . Pomerado Health System’s billing practices.

DHS asks us to decide whether a health care district created by the State of California has standing to sue the state in a federal court to challenge-the validity of state regulations on federal constitutional grounds. We answer in the negative.

*1106 I.

Palomar Pomerado is a health care district formed under California law. It provides long-term health care services at two “distinct part nursing facilities” 3 in San Diego County, California. Palomar Pom-erado provides services to privately ’ insured patients, Medi-Cal patients, and uninsured patients who paj^ on their own.

In April 1994, Palomar Pomerado switched from a billing system based on the level of care the patient required to a “flat rate” system based on the type of room the patient occupied. At the same time, Palomar Pomerado introduced a “prompt pay discount” for patients who paid privately or who were privately insured. Palomar Pomerado does not offer the discount to Medi-Cal. Under the prompt pay discount…

Concurring Opinion

Hawkins, J.

concurring:

The majority is undoubtedly correct in applying current circuit law, especially the way in which City of South Lake Tahoe v. *1109 California Tahoe Reg’l Planning Agency, 625 F.2d 231 (9th Cir.1980), has been subsequently interpreted. See Burbank-Glendale-Pasadena Airport Auth. v. City of Burbank, 136 F.3d 1360 (9th Cir.1998). Because the current law in this circuit calls for a ban on any constitutional challenge by a political subdivision against its “parent state” — an interpretation at odds with at least three other circuits — I believe omen banc court should take another look at South Lake Tahoe and its progeny.

South Lake Tahoe cited a long list of cases to support the statement that “[a] City may not challenge [a state agency’s] plans and ordinances on constitutional grounds.” However, none of the cited cases involved a Supremacy Clause challenge (at issue in South Lake Tahoe); rather, they addressed Fourteenth Amendment or Contract Clause challenges. Burbank-Glendale-Pasadena Airport Authority v. City of Burbank, 136 F.3d 1360 (9th Cir.1998), simply relied on South Lake Tahoe. We have thus never satisfactorily stated our rationale for including all…

Sign in to read the full opinion

Create a free account to read the complete opinion text, citation history, and good-law status for this case.