Benjamin B. and Dorina Micorescu - Page 3

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            social service agency responsible for providing various services                            
            to individuals including determining eligibility for, and case                              
            management in, medicaid3 for elderly persons.                                               
                  The State of Oregon has applied for and received "waivers"                            
            from the Federal Health Care Financing Administration that allow                            
            it to use medicaid funds intended for nursing facility care, to                             
            provide community-based care services to nursing facility                                   
            eligible individuals.                                                                       
                  The State of Oregon provides health care for elderly                                  
            medicaid-eligible individuals, including long-term adult foster                             
            care services.  The State also contracts with health care                                   
            providers to supply a variety of necessary services, including                              
            adult foster care.  During the years at issue, ASD was a party to                           
            an Interagency Partnership Agreement (partnership agreement) with                           
            Providence ElderPlace, A Division of Shared Services of the                                 
            Sisters of Providence (ElderPlace).                                                         
                  ElderPlace is not an agency of a State or of a political                              
            subdivision of a State.  It is a State of Oregon medicaid service                           


                  3Medicaid is a State-administered program jointly funded by                           
            State and Federal Governments under tit. XIX of the Social                                  
            Security Act Amendments of 1965 (SSA), Pub. L. 89-97, sec. 122,                             
            79 Stat. 286, 343, current version at 42 U.S.C. secs. 1396-1396v                            
            (1994).  It provides medical assistance for certain low-income                              
            people who meet specific eligibility criteria.                                              
                  Medicare is Federal health insurance for the aged and                                 
            disabled under tit. XVIII of the SSA, secs. 1801-1815, 79 Stat.                             
            291-297, current version at 42 U.S.C. secs. 1395-1395ggg (1994 &                            
            Supp. III 1997).                                                                            




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