Appeal from the Order of the Department of Public Welfare, in case of Appeal of: Mansion Nursing and Convalescent Home, Inc., File Nos. 23-82-305, 23-82-319 and 23-82-320.
John L. Heaton, Dilworth, Paxson, Kalish & Kauffman, with him, Jeffrey C. Apfelbaum, Apfelbaum & Apfelbaum, for petitioner.
Bruce G. Baron, Assistant Counsel, with him, John Kane and Jules S. Henshell, for respondent.
Judges Craig and Palladino, and Senior Judge Kalish, sitting as a panel of three. Opinion by Judge Craig.
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Mansion Nursing and Convalescent Home, Inc. appeals a final order of the Office of Hearings and
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Appeals of the Department of Public Welfare (DPW) which refused to reimburse Mansion for interest payments on that portion of a loan which Mansion used to purchase vacant land for a proposed expansion of its physical facility. Second, Mansion appeals DPW's reduction, by half, of the compensation paid to Mansion's owner, Jan Fabian, for his services, and DPW's complete disallowance of compensation to his wife, Helen Fabian. Finally, Mansion appeals DPW's affirmation of the attorney examiner's denial of Mansion's motion to consider an issue not raised originally on appeal.
This court must affirm unless we find that the adjudication is in violation of constitutional rights, is not in accordance with law, is in violation of the agency's regulations or procedures, or that any necessary finding of fact is not supported by substantial evidence. 2 Pa. C.S. § 704.
In 1977, Mansion borrowed $720,000, and purchased two vacant lots with a portion of that loan, with the intent of expanding its facility. Not long after that purchase, the Department of Health granted certificates of need to several other nursing homes in the same area served by Mansion, thereby eliminating the need for Mansion to expand its facility. Mansion then put the recently-purchased real estate up for sale.
For the fiscal years ending 1977 and 1978, DPW classified the interest payments which Mansion made on that portion of the loan used for the purchase of the land as "interest on capital indebtedness", and reimbursed Mansion for those expenditures. However, for the fiscal years ending 1979 ...