Cortlandt Nursing Care Center v. Whalen

OPINION OF THE COURT

Memorandum.

In this CPLR article 78 proceeding, respondent Cortlandt Nursing Care Center challenges the validity of Medicaid reimbursement rate ceilings established by appellant State Commissioner of Health for respondent’s medical facility.

Pursuant to the Public Health Law (§ 2807, subd 3), the commissioner is empowered to establish reimbursement rates "reasonably related to the costs of providing”1 health-related services. To effectuate this legislative directive, the commissioner promulgated regulations for the computation of rate ceilings (see 10 NYCRR Part 86),2 one of…