The nursing home where a Medicaid recipient died should be paid from the proceeds of the sale of her home before Medicaid is reimbursed, a divided state appeals panel has ruled, reversing a lower court judge.

Appellate Division, First Department Justice Rolando Acosta (See Profile) wrote the 3-1 majority opinion in Matter of Shannon, 92560/08, joined by Justices Peter Tom (See Profile) and Barbara Kapnick (See Profile). He wrote that the nursing home’s claims took precedence because they arose against the woman’s guardian while she was still alive, while Medicaid’s claims arose only against her estate after she died.