Good Shepherd-Fairview Home, Inc. v. Axelrod

OPINION OF THE COURT

Harvey, J.

Petitioner is the owner and operator of a licensed not-for-profit residential health care facility which provides care for Medicaid patients. When petitioner entered the Medicaid program in 1966, it cared for patients in a 19th century wood-frame building (hereinafter the HRF building) which, for depreciation purposes, was assigned a value of $551,720 and assigned a useful life of 30 years. Accordingly, petitioner’s per diem Medicaid reimbursement rate included an annual allowance of $18,391 for depreciation for the HRF building. Subsequently, in 1980, following…