Kizer

Appellant Mission Community Hospital appeals from a judgment denying appellant’s petition for writ of administrative mandamus seeking to compel respondent State of California, Department of Health Services to accept appellant’s amended 1985 Medi-Cal cost report. Appellant contends respondent had a mandatory duty to accept the amended cost report. Alternatively, appellant contends, if respondent had discretion to accept the amended cost report, respondent abused its discretion in failing to accept the amended cost report. We affirm.

Facts and Procedural Background

Appellant is a participating hospital in California’s Medi-Cal program. Health care providers participating in Medi-Cal are required to submit cost reports to respondent for the purpose of determining reasonable costs for services and establishing rates of payment. Respondent has established procedures for auditing participants’ cost reports. Appellant submitted a cost report for its fiscal year 1984, ending on October 31. After an audit, respondent proposed certain adjustments to the cost report including adjustments to the return on equity. Through administrative procedures, appellant appealed the…