ElderCare Properties, Inc. v. Texas Department of Human Services

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Appellant ElderCare Properties, a nursing home in Weslaco, appeals from a summary judgment that the Texas Department of Human Services did not violate any statute or constitutional provision by granting a special commissioner’s waiver to ElderCare’s competitor, Weslaco Nursing and Rehabilitation Center. ElderCare claims that the trial court erred in granting summary judgment raising three grounds: (1) that ElderCare has an inherent right to judicial review of the waiver; (2) that the special commissioner’s waiver rule is invalid or improperly applied in this case; and (3) that ElderCare has a right to a contested case hearing under the Administrative Procedure Act. *fn1 We will affirm the judgment.

BACKGROUND

The Texas Legislature has delegated to the Department of Human Services (“DHS”) the authority to administer and monitor the Texas program of medical assistance to financially needy persons. Tex. Hum. Res. Code Ann. �� 32.001-.052 (West 2001). Pursuant to this grant of authority DHS contracts with nursing homes to provide a certain number of beds for Medicaid patients. ElderCare Properties (“ElderCare”) operates the Valley Grande Manor nursing home in Weslaco and is licensed to operate 147 nursing beds. Of those beds, ElderCare contracts with DHS to operate 142 as Medicaid beds for which ElderCare is reimbursed under the Medicaid program. *fn2

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