Michael Manor, Inc. v. Commonwealth, Department of Public Welfare

Opinion by

Judge Craig,

Claimants Michael Manor, Inc. and Guilford Convalessarium, Inc., private facilities providing skilled nursing and intermediate care, appeal from a decision of the Pennsylvania Department of Public Welfare which denied part of the reimbursement they claimed for patient services performed in their fiscal year 1981. The department interpreted 55 Pa. Code §1181.73 (b)1 as requiring, when a facility has filed a *585late final cost report, that reimbursement determinations be based on costs for the last previous year audited. The question of law is whether that regulation applies…