Matter of Mayflower Nursing Home v. Office of Health Sys. Mgmt. of the Dep't of Health of the State of New York

OPINION OF THE COURT

Memorandum.

The judgment of the Appellate Division should be affirmed, with costs.

We agree with the Appellate Division that there is substantial evidence in the record to support the commissioner’s determination that petitioner’s lease was a non- arm’s length arrangement within the meaning of former section 86.28 of the departmental regulations (former 10 NYCRR 86.28) and that those regulations rather than the instructions on the HE-2 form establish the standard by which nonarm’s length arrangements are to be determined. At issue in this proceeding is not whether petitioner…