Connecticut Association of Health Care Facilities Inc. v. Bremby
A Connecticut law that prohibits the discharge or eviction of Medicaid patients may not qualify as a Fifth Amendment taking. The Connecticut Association of Health Care Facilities Inc. filed suit against Roderick Bremby, the commissioner of the Department of Social Services, apparently alleging that nursing homes that voluntarily accepted patients as customers were unable to discharge or to evict Medicaid patients. The plaintiff alleged that this constituted a per se taking of property, or space in the nursing homes. The District Court dismissed the takings claim, and the plaintiff appealed to the 2nd Circuit. The 2nd Circuit reviewed de novo and concluded that Yee v. City of Escondido, a 1992 decision of the U.S. Supreme Court, precluded the takings claim. "As in Yee," wrote the 2nd Circuit, "the nursing homes here voluntarily accepted nursing home patients as customers." The 2nd Circuit added, "Under Yee, a state law prohibiting the discharge or eviction of those customers is not a taking under the Fifth Amendment, especially since the nursing homes are free to discharge Medicaid patients by ceasing operations as nursing homes." The 2nd Circuit rejected the plaintiff's claim that nursing homes must obtain the approval of the commissioner of the Department of Social Services in order to cease operations. The U.S. Supreme Court rejected a similar argument in Yee. Here, the plaintiff did not allege that any of the nursing homes actually attempted, without success, to cease operations. The 2nd Circuit affirmed the judgment of the District Court, Dorsey, J.