In the latest case against the NYS Department of Health regarding EO#38 that puts limits on Executive Compensation and Administrative Expenditures, the state requested that the court dismiss the case based on a failure to state a cause of action. The state lost. The judge ruled that the case could proceed as the plaintiffs had sufficiently stated three causes of action against DOH.
They include the possibility that:
- The regulations violate the separation of powers doctrine, and
- DOH overstepped the boundaries of its lawfully delegated authority, and
- The regulations are arbitrary and capricious
This does not mean that the plaintiffs have won the case, just that they can proceed to litigate the case.
The plaintiffs are two groups that had sued as coalitions – the court consolidated the two cases. Plaintiffs in one lawsuit include Leading Age NY, Inc.,New York State Health Facilities Association, Inc.; Southern New York Association, Inc.; Greater New York Health Care Facilities Association, Inc.; Empire State Association of Assisted Living, Inc.; Home Care Association of New York State, all trade associations for health care entities along with many named members. Plaintiffs in the second lawsuit include the New York State Coalition of Managed Long Term Care/PACE Plans and the Coalition of New York State Public Health Plans, which are unincorporated associations of healthcare plans.
The decision can be accessed here: http://law.justia.com/cases/new-york/other-courts/2014/2014-ny-slip-op-32236-u.html