As the result of an audit to determine the petitioner's operating costs, on which her Medicaid reimbursement rates for 1972 and 1973 would be based, the respondent disallowed certain expenses, a determination that the petitioner, in this proceeding, claims is arbitrary. The controversy centers on the disallowance of $255,000, the petitioner's cost of purchasing the facility, and on the useful lives assigned 12 items for depreciation purposes. At the time of the purchase,...
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