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  5. 44 N.Y.2d 763 (1978)
 

MATTER OF SEVERINO v. INGRAHAM

44 N.Y.2d 763 (1978)

In the Matter of Lawrence J. Severino et al., Doing Business as Kent Nursing Home, Respondents, v. Hollis S. Ingraham, as Commissioner of the Department of Health of the State of New York, Appellant.

Court of Appeals of the State of New York.

Decided April 25, 1978.

Attorney(s) appearing for the Case

Louis J. Lefkowitz, Attorney-General (Clifford A. Royael and Ruth Kessler Toch of counsel), for appellant.

David C. Gilberg for respondents.

Chief Judge BREITEL and Judges JASEN, GABRIELLI, JONES, WACHTLER, FUCHSBERG and COOKE concur in memorandum.

MEMORANDUM.

At issue on this appeal is the rate of Medicaid reimbursement for care provided by the petitioners, operators of the Kent Nursing Home, for the fiscal year July 1, 1968 to June 30, 1969. Authority to establish reimbursement rates is conferred on the State Commissioner of Health and such rates must be "reasonably related to the costs of providing such service." (Public Health Law, § 2807, subd 3;

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