Fralin v. Kozlowski

Opinion

FITZPATRICK, J.

The sole issue in this appeal is whether a related third-party builder may recover a return on equity capital invested during the initial construction of a Medicaid provider nursing facility. Fralin argues that the trial court erred in upholding the Virginia Department of Medical Assistance’s (“DMAS”) decision to deny Medicaid reimbursement to Medical Facilities of America (“MFA”) for return on equity capital used by MFA’s related third-party builder, Fralin, in the construction of nursing facilities for MFA between 1982-1986. Finding no error, we affirm.

BACKGROUND

Fralin…