The State wants to make sure that the poorest sector of society is handled, presuming that the middle class can more easily adjust.  The State wants to reserve privately enterprised Medicaid-entric care facilities for its public purpose and not have them diluted with better paying self-supporting tenants.  This is the long arm of the law.  The epitome of politicians and bureaucrats.  You hate lawyers?  You'll beg for one like Portnoy when you have an ax to grind.