James P. Holloway and Susan A. Turner of Ober|Kaler look at a recent California decision. A California court ordered California's Medicaid program ("Medi-Cal")

to increase payments to nine nursing homes operated by a chain provider in

the state. The order was issued following a lawsuit filed by Ober|Kaler on

behalf of the chain, challenging Medi-Cal's use of an "underground" regulation

that is contrary to the federally-approved state plan and that resulted in

underpayments to these nine and several other California nursing homes.