Eastwood Nursing and Rehabilitation Center v. Department of Public Welfare

In Eastwood Nursing and Rehabilitation Center v. Department of Public Welfare, 910 A.2d 134, 141-142 (Pa. Cmwlth. 2006), a nursing home appealed the denial of its application for a contract to be a Medical Assistance provider. It challenged the statement of policy that adversely affected its application, asserting that it was an invalid, unpublished regulation. The Department of Welfare's statement of policy contained a disclaimer that it was not a regulation and an assurance that the Department retained discretion to deviate from the statement of policy in the case of a particular nursing home. By its very terms, the policy had future, not immediate, effect. Notwithstanding these provisions, we concluded that the so-called statement of policy actually functioned as a regulation. Because the individuals charged with the day-to-day authority to implement the statement of policy never deviated from its terms, the so-called statement of policy functioned as a binding norm. In Eastwood Nursing, 910 A.2d 134, the Court held that where a so-called statement of policy functions as a binding norm, it was subject to the procedural requirements established for the promulgation of a regulation.