Stuyvesant Polyclinic v. Axelrod

OPINION OF THE COURT

Harvey, J.

Petitioner operates a free-standing ambulatory care facility in New York City. Prior to 1977, petitioner had never sought Medicaid reimbursement and, hence, had never filed a Medicaid cost report pursuant to 10 NYCRR 86-1.3. In 1977, petitioner’s directors apparently decided to apply for Medicaid reimbursement, and the first full year for which a cost report was filed was 1978. In order to set a target rate of reimbursement for petitioner, a budget was prepared and submitted to the Bureau of Health Care Reimbursement, and a rate of reimbursement was set based on…