Belle Terrace v. State of Nebraska, Department of Health and Human Services Finance and Support, 274 Neb. 612

Summary

The Supreme Court of Nebraska reviewed Medicaid reimbursement adjustments imposed on Belle Terrace by the Nebraska Department of Health and Human Services. The court held that the term "in existence" in the applicable Nebraska administrative regulation had its plain meaning of physical existence, requiring use of the facility's 1972 cost basis rather than its 2000 purchase cost for depreciation. The court reversed the district court and remanded with directions to reinstate the Department director's order.

Holdings

1. The phrase "in existence" has an unambiguous plain, direct, and ordinary meaning of physical existence.
2. Because the nursing facility buildings physically existed in 1972 and were in existence on December 1, 1984, the 1972 cost must be used as the depreciation cost basis rather than the 2000 purchase cost.
3. The district court erred in reversing the Department's audit adjustments because its decision did not conform to the law and was not supported by competent evidence.

Questions Presented

1. Whether the phrase "in existence" in 471 Neb. Admin. Code, ch. 12, § 011.06H (1992), means physical existence or existence as an asset owned by a Medicare- or Medicaid-participating facility.
2. Whether the Department properly used the 1972 cost of Belle Terrace's buildings, rather than the 2000 acquisition cost, as the depreciation cost basis for Medicaid reimbursement.
3. Whether the district court erred in reversing the Department's audit adjustments.

Disposition

reversed_and_remanded