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MEDICON v. PERALES

145 A.D.2d 167 (1989)

In the Matter of Medicon Diagnostic Laboratories, Inc., Appellant-Respondent, v. Cesar A. Perales, as Commissioner of The Department of Social Services of the State of New York, Respondent-Appellant

Appellate Division of the Supreme Court of the State of New York, Third Department.

February 16, 1989

Attorney(s) appearing for the Case

Cooper, Erving, Savage, Nolan & Heller (Mark E. Watkins of counsel), for appellant-respondent.

Robert Abrams, Attorney-General (Richard J. Dorsey and Peter G. Crary of counsel), for respondent-appellant.

KANE, CASEY, WEISS and LEVINE, JJ., concur.

MAHONEY, P. J.

As a result of marked increases in Medicaid billing by medical laboratories, the State Department of Social Services began to investigate the billing practices of some 40 laboratories and instituted a partial withholding of payments to them, including one operated by petitioner. Following further investigation, including on-site audits, the Department determined that there was reliable information...

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