I was not thrilled about Kavanaugh's appointment in the first place, and am not a fan of his. Indeed, on past threads, his intellectual dishonesty in some rulings has caused me to speculate that there may have been some germ of truth to the accusations brought against him during his confirmation. All that said, I'm not sure this decision is incorrect. If you take the king's shilling, you do the king's bidding, and by accepting federal monies, these medical facilities essentially agree to comply with the conditions the fedgov imposes.
In a sane world, and with morally courageous leadership, many of these facilities would simply opt out of medicare/medicaid programs, but with the fascistic blurring of the lines between government and business, we should expect to see profit placed over principle virtually every time the two are at odds.
That's how I see it too. Don't take medicare/medicaid payments if you do not want to follow federal regulations. As simple as that.