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TEX. S. DEPT. OF HUM. RES. v. SILVER THREADS CO.

No. 12765.

569 S.W.2d 49 (1978)

TEXAS STATE DEPARTMENT OF HUMAN RESOURCES, Appellant, v. SILVER THREADS COMPANY, Appellee.

Court of Civil Appeals of Texas, Austin.

Rehearing Denied August 2, 1978.

Attorney(s) appearing for the Case

John L. Hill, Atty. Gen., C. J. Carl, Asst. Atty. Gen., Austin, for appellant.

Andrew L. Jefferson, Jr., Jefferson & Maley, Houston, for appellee.

PHILLIPS, Chief Justice.

Appellee is the operator of Silver Threads Nursing Home in Houston, Texas. It was a vendor of nursing home services to Medicaid recipients through a contract with the Texas Department of Public Welfare, pursuant to the Medical Assistance Act of 1967, Art. 695j-1, V.C.S. (Acts 1967, 60th Leg., ch. 151, p. 310).

In July of 1976, the Commissioner of the Department notified appellee that the contract was being canceled and terminated because...

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