Crofton Convalescent Center, Inc. v. Department of Health & Mental Hygiene

BARBERA, Judge.

In this case we decide whether, under the Code of Maryland Regulations (“COMAR”) 10.09.10.10,1 a Medicaid provider that made payments pursuant to an interest rate swap agreement *205can claim reimbursement of those payments as mortgage interest.

The petitioner, Crofton Convalescent Center (“Crofton”), is a nursing facility certified to provide medical care through the Maryland Medical Assistance Program (“Medicaid”). In 1998, Crofton entered into a financing arrangement that, through the use of an interest rate swap agreement, exchanged the variable interest rate on Crofton’s…