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HEALTH FACILITIES v. AXELROD

154 A.D.2d 10 (1990)

New York State Health Facilities Association et al., Appellants, v. David Axelrod, as Commissioner of the Department of Health of The State of New York, Respondent

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

February 22, 1990

Attorney(s) appearing for the Case

Fink, Weinberger, Fredman, Berman, Lowell & Fensterheim, P. C. (Gerald Kahn and Stanley H. Lowell of counsel), for appellants.

Robert Abrams, Attorney-General (Kathleen Liston Morrison and Nancy A. Spiegel of counsel), for respondent.

KANE, J. P., CASEY, MIKOLL and LEVINE, JJ., concur.

YESAWICH, JR., J.

Petitioners* are individual nursing homes, which participate in the Medicaid program, and the association which represents them. It is alleged that petitioners rent their respective facilities pursuant to "arm's length leases" entered into prior to March 10, 1975. These leases obligate petitioners to pay a base rent, and also to underwrite all real estate taxes,...

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