Matter of Cedar Manor Nursing Home v Novello
2009 NY Slip Op 04898 [63 AD3d 833]
June 9, 2009
Appellate Division, Second Department
As corrected through Wednesday, August 5, 2009


In the Matter of Cedar Manor Nursing Home,Appellant,
v
Antonia Novello et al., Respondents.

[*1]Cadwalader, Wickersham & Taft LLP, New York, N.Y. (Peter G. Bergmann andWilliam J. Natbony of counsel), for appellant.

Andrew M. Cuomo, Attorney General, New York, N.Y. (Michael Belohlavek and StevenWu of counsel), for respondents.

In a proceeding pursuant to CPLR article 78 to review a determination of the respondentsdated September 5, 2006, establishing reimbursement rates for the petitioner nursing home, thepetitioner appeals from an order and judgment (one paper) of the Supreme Court, WestchesterCounty (Loehr, J.), entered October 5, 2007, which denied the petition and, in effect, dismissedthe proceeding.

Ordered that the order and judgment is affirmed, with costs.

An administrative agency's interpretation of its own regulations must be upheld unless thedetermination is unreasonable or irrational (see Matter of Marzec v DeBuono, 95 NY2d262 [2000]). Here, the New York State Department of Health (hereinafter the DOH), indetermining the capital cost component of the petitioner's Medicaid reimbursement rate,deducted, from the allowable principal mortgage balance, payments that the petitioner hadpreviously received for equity return (see 10 NYCRR 86-2.21 [e]). The DOH'sdetermination to reduce the petitioner's allowable principal mortgage balance was not irrational,arbitrary, or capricious (see Matter ofNazareth Home of the Franciscan Sisters v Novello, 7 NY3d 538 [2006]; Beth Israel Med. Ctr. v Department ofHealth of State of N.Y., 18 AD3d 367 [2005]; Matter of Glen Is. Care Ctr. v Novello, 11 AD3d 612 [2004];St. Joseph's Hosp. Health Ctr. v Department of Health of State of N.Y., 247 AD2d 136,153 [1998]). Mastro, J.P., Skelos, Dickerson and Lott, JJ., concur.


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