Belshe

HealthSmart Pacific Inc. (HealthSmart) appeals a judgment denying its petition for writ of mandate, which sought to reverse a decision of S. Kimberly Belshé, Director of the State of California Department of Health Services (Department). HealthSmart contends the trial court erred by finding that under Welfare and Institutions Code section 14171, subdivision (j), the petition was not timely filed. We reverse the judgment.

Factual and Procedural Background

HealthSmart disagreed with the amount of Medi-Cal reimbursement established by the Department for psychiatric services provided to Medi-Cal beneficiaries by HealthSmart during its 1993 fiscal year. An administrative law judge held a hearing on the reimbursement dispute and submitted to Belshé (hereafter the Director) a proposed decision denying HealthSmart’s administrative appeal.

On October 22, 1996, the Director adopted the proposed decision as the Director’s final decision by signing a statement of adoption. On October 30, the Department mailed a copy of the Director’s final decision to Health-Smart.

On April 29, 1997, HealthSmart filed the petition. The Director demurred to the petition, alleging that it was not…