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8 N.J.A.R. 475

Medical Assistance and Health Services, Division of; Lincoln Park Nursing & Convalescent Center, Intermediate Care Center, Andover Nursing & Convalescent Home, & Intermediate Care Center v
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Citation: 8 N.J.A.R. 475
Decision Date: 1982
Agency: DIVISION OF MEDICAL ASSISTANCE
Synopsis: Petitioners sought a utility add-on adjustment under N.J.A.C. 10:63-3, et seq. for utility expenses allegedly incurred by petitioners in fiscal year 1980-81. The administrative law judge assigned to the case noted that peti- tioners argued that the increasing fuel costs in the years under dis- cussion continued an 'unusual situation' which, under N.J.A.C. 10:63-3.20, would allow for a change in the components of the rate setting guidelines applied to petitioner. The judge found that peti- tioners had demonstrated that they are cost efficient in regard to energy expenses, but that their actual utility cost for 1980-81 exceeded the utility reimbursement due them. The judge rejected the argument that this was an unusual situation, however, since the rate of inflation is factored into the rate setting guidelines and all institutions were similarly affected during that time period. The rate setting system had been established to provide for reasonable rates, and no showing had been made that the system had functioned otherwise. Accordingly, the judge concluded that the sought after adjustment should be denied. Upon review this decision was adopted by the Director of the Division of Medical Assistance and Health Services. David A. Biederman, Esq. for the petitioners Robert J. Haney, Deputy Attorney General, (Irwin I. Kimmelman, Attorney General of New Jersey, attorney), for respondent Initial Decison
Rule(s) Cited: 10:63-3.20 
Citation Tracker adopted-Div. of Med. Ass't.; affirmed -App. Div., A-291-82 , 10/5/83 (unreported); certification denied-96 N.J. 261 (1984) [Updated through 1991]