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8 N.J.A.R. 463

Cranford Hall Nursing Home Medicaid Reimbursement Rate Effective January 1, 1980, and Cranford Hall Nursing Home Medicaid Reimbursement Rate Effective January 1, 1978 through January 1, 1980, In the Matter of
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Citation: 8 N.J.A.R. 463
Decision Date: 1982
Synopsis: Cranford Hall appealed the calculation of per diem Medicaid rates payable in 1978, 1979 and 1980 for services provided to qualified recipients under Title XIX of the Social Security Act. The administrative law judge assigned to the case found that Cran- ford Hall employed a full-time administrator who, in 1978, received a salary of $777930. The judge noted that pursuant to N.J.A.C 10:633.5(b)2 reasonable administrative salaries were to be determined by a regression analysis formula utilized by the Division of Health Economic Services and that Cranford in a 1979 provider agreement had agreed to comply with all Medicaid regulations. The judge de- termined that the administrator's salary screen of $30,509 set through the regression analysis was reasonable and that the Division had been correct in denying Cranford's higher figure as being unreasonable. In addition, the judge affirmed the disallowance of management fees paid to an individual not actively engaged in the day-to-day activities of the home. The judge determined that Cranford had failed to estab- lish that these disbursements were a cost of doing business nor were they an expense related to the conduct of nursing home activities. Upon review of this initial decision, the Director of the Division of Medical Assistance and Health Services adopted it as his own. Raymond T. Lyons, Jr., Esq. for petitioner (Sorkow, Eichen & Lyons Esqs, attorneys) Robert J. Haney, Deputy Attorney General for respondent (Irwin I. Kimmelman, Attorney General of New Jersey, attorney) In Re: Cranford Hall Initial Decision
Rule(s) Cited: 10:63-3.5(b)2 
Citation Tracker adopted-Div. of Med. Ass't.; dismissed-App. Div., A-1461-82, 8/3O/86 [Updated through 1991]