Petitioner, operator of Castle Rest Nursing Home in Onondaga County, a participant in the Medicaid program, admittedly filed late annual fiscal reports with respondent for the seven fiscal years from 1976 through 1982 (see, Public Health Law § 2805-e; 10 NYCRR 86-2.2 [b]). Pursuant to 10 NYCRR 86-2.2 (c) (eff Sept. 30, 1976), respondent levied a 2% penalty upon petitioner's current reimbursements totaling $231,562.41 and deducted...
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