White Plains Nursing Home v. Axelrod

OPINION OF THE COURT

Main, J. P.

Petitioner is a partnership operating a nursing home in New York City. In 1975, respondent Department of Health (hereinafter Department) reduced petitioner’s Medicaid realty reimbursement rate because the lease under which petitioner operates the nursing home was not the result of an "arm’s length” transaction (see, Matter of White Plains Nursing Home v Whalen, 53 AD2d 926, affd 42 NY2d 838, cert denied 434 US 1066). Subsequently, this court ordered that petitioner be paid at its original reimbursement rate pending a hearing on the issue of the legitimacy of the…