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Borrego Community Health v. State Dept. of Health
Borrego Community Health Foundation (Borrego) appeals from the denial of a petition for writ of mandate that sought to overturn two audit adjustments the State Department of Health Care Services (Department) made to Borrego’s 2008 cost reports. Borrego argues the Department failed to establish by a preponderance of the evidence at the administrative hearing that its audit findings were correctly made. We disagree. The Department established by a preponderance of the evidence that Borrego provided insufficient auditable documentation to support these claimed costs. Borrego also challenges two legal authorities cited by the administrative law judge (ALJ) as alternative bases for rejecting Borrego’s claimed costs: (1) section 104.10 of the Provider Reimbursement Manual (PRM) published by the federal Centers for Medicare & Medicaid Services and (2) North Clackamas Community Hospital v. Harris (9th Cir. 1980) 664. F.2d 701 (North Clackamas). These collateral arguments cannot overc

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