OMNI Behavioral Health v. State

Summary

The Nebraska Supreme Court affirmed a district court judgment upholding the Nebraska Department of Health and Human Services' determination that OMNI Behavioral Health had been overpaid $34,876.44 under a contract. The court held that the contract authorized DHHS to audit OMNI's performance and demand repayment for audit exceptions, that OMNI bore the burden of challenging the administrative decision, and that competent evidence supported the overpayment determination.

Holdings

1. DHHS was authorized by the contract to audit OMNI's performance and demand repayment for audit exceptions even if the referenced federal regulations were inapplicable.
2. The district court was not required to place the burden of proof on DHHS to prove the overpayment; in an APA challenge to an agency decision, the agency's decision is presumed correct and the challenger bears the burden of proof.
3. Competent evidence supported the district court's finding that OMNI failed to demonstrate actual contract costs for the challenged fidelity-and-adherence charges and the portion of the employee's salary, so affirmance of DHHS's overpayment determination was proper.

Questions Presented

1. Whether DHHS had authority under the contract to audit OMNI's performance and demand repayment even if the federal regulations referenced by the hearing officer did not apply.
2. Whether the district court improperly placed the burden of proof on OMNI rather than DHHS in reviewing DHHS's administrative overpayment determination.
3. Whether competent evidence supported the district court's finding that DHHS had overpaid OMNI for fidelity-and-adherence charges and a portion of an employee's salary.

Disposition

affirmed