Western Reserve Convalescent Home of Erie v. Commonwealth, Department of Public Welfare

OPINION

ZAPPALA, Justice.

This appeal by the Commonwealth of Pennsylvania, Department of Public Welfare (DPW), raises the issue of whether the DPW is obligated to pay to Appellee, Western Reserve Convalescent Home of Erie (Western Reserve), a participant in the Medical Assistance Program (MA), interest on its underpayment of reimbursement for nursing home services.1

On January 1, 1983, Western Reserve sold its long-term nursing care facility and filed its final cost report. The DPW returned the cost report to allow Western Reserve to make corrections. Western Reserve filed a corrected cost…