Appeal from the Order of the Office of Hearings and Appeals of the Department of Public Welfare in the case of Appeal of: Mercy Convalescent Home, Inc., File No. 23-81-283.
Suzanne Rauer, with her, Charles O. Barto, Jr., for petitioner.
Bruce G. Baron, Assistant Counsel, for respondent.
President Judge Crumlish, Jr., Judge Colins, and Senior Judge Kalish, sitting as a panel of three. Opinion by President Judge Crumlish, Jr.
[ 96 Pa. Commw. Page 218]
Mercy Convalescent Home, Inc. (Mercy), appeals a Department of Public Welfare (DPW) order denying it reimbursement for failing to timely file cost reports for fiscal years 1977 and 1978. We affirm.
Mercy, a skilled nursing home, receives reimbursement for patient services performed in the previous fiscal period under the Pennsylvania Medical Assistance Program. Reimbursement is based on annual cost reports which are audited by DPW. Due to the chaotic state of Mercy's bookkeeping and accounting departments, it requested and was granted numerous time extensions for filing its 1977 and 1978 cost reports.*fn1 After Mercy filed the reports, DPW notified it, on April 1, 1980, that they were unauditable.*fn2 However, Mercy failed to resubmit the reports until April
[ 96 Pa. Commw. Page 21915]
, 1981 (Fiscal Year 1977) and April 20, 1981 (Fiscal Year 1978). DPW rejected the resubmitted reports as untimely filed in September 1981.*fn3
The hearing examiner found that the April 1, 1980 letter established a thirty-day extension for resubmitting the reports. The examiner concluded that DPW acted properly in rejecting the resubmitted reports because Mercy did not meet the extended deadline.
Our scope of review is limited to determining whether DPW's adjudication is in violation of constitutional rights, is not in accordance with law or is in violation of the agency's regulations or procedures, and whether substantial evidence supports the findings of fact. Montgomery County Geriatric and Rehabilitation Center v. Department of Public Welfare, 75 Pa. Commonwealth Ct. 248, 462 A.2d 325 (1983).
Mercy contends that DPW's April 1, 1980 letter established an open time extension for resubmitting the reports since it did not contain a deadline date. While we agree that the letter did not expressly establish a thirty-day resubmittal deadline, we reject Mercy's contention that this letter granted it an open extension.
Where the hearing examiner's conclusion was correct, although based on an erroneous reason, it may be affirmed if the record clearly indicates a correct basis for his conclusion. Hankinson v. Department of Public ...