Bottomley v. Division of Administrative Law Appeals

The plaintiffs, owners of a nursing home which opened July 15, 1975, appealed from the Rate Setting Commission’s determination of a per diem rate at which the nursing home would be reimbursed for publicly aided patients in 1978. The plaintiffs’ contention is that the commission’s methodology did not make adequate provision for the recovery of start-up losses that they allege resulted from the staggered licensing procedure mandated by the Department of Public Health: that is, instead of licensing the nursing home’s entire constructed bed capacity (120 beds) at the outset in 1975, the…